Certain Corrosion-Resistant Steel Products From the People's Republic of China: Affirmative Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 75-78 [2015-32763]

Download as PDF Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices the review will continue. Thereafter, any interested party wishing to participate in the Sunset Review must provide substantive comments in response to the notice of initiation no later than 30 days after the date of initiation. This notice is not required by statute but is published as a service to the international trading community. Dated: December 22, 2015. Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2015–33054 Filed 12–31–15; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–026] Certain Corrosion-Resistant Steel Products From the People’s Republic of China: Affirmative Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) preliminarily determines that certain corrosionresistant steel products (corrosionresistant steel) from the People’s Republic of China (PRC) are being, or are likely to be, sold in the United States at less than fair value (LTFV), as provided in section 733(b) of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is October 1, 2014, through March 31, 2015. The estimated weighted-average dumping margins are shown in the ‘‘Preliminary Determination’’ section of this notice. Interested parties are invited to comment on this preliminary determination. AGENCY: DATES: Effective Date: January 4, 2016. tkelley on DSK3SPTVN1PROD with NOTICES FOR FURTHER INFORMATION CONTACT: Nancy Decker or Andrew Huston, 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) 482–0196 or (202) 482–4261, respectively. VerDate Sep<11>2014 16:43 Dec 31, 2015 Jkt 238001 SUPPLEMENTARY INFORMATION: Background The Department published the notice of initiation of this investigation on June 30, 2015.1 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum that is dated concurrently with this determination and hereby adopted by this notice.2 A list of topics included in the Preliminary Decision Memorandum is included as Appendix II 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 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 found at https://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum and the electronic version of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The product covered by this investigation is corrosion-resistant steel from the PRC. For a full description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix I. Scope Comments In accordance with the preamble to the Department’s regulations,3 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).4 Certain interested parties commented on the 1 See Certain Corrosion-Resistant Steel Products From Italy, India, the People’s Republic of China, the Republic of Korea, and Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR 37228 (June 30, 2015) (Initiation Notice). 2 See Memorandum from Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Enforcement and Compliance ‘‘Decision Memorandum for the Preliminary Determination in the Antidumping Duty Investigation of Certain Corrosion-Resistant Steel Products from the People’s Republic of China’’ (Preliminary Decision Memorandum), dated concurrently with and hereby adopted by this notice. 3 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 4 See Initiation Notice, 80 FR at 37229. PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 75 scope of the investigation as it appeared in the Initiation Notice, as well as additional language proposed by the Department. For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.5 The Department is preliminarily modifying the scope language as it appeared in the Initiation Notice to clarify that corrosion-resistant steel which is further processed in a third country is covered by the scope of the investigation. See ‘‘Scope of the Investigation,’’ in Appendix I, which includes the additional clarifying language. Methodology The Department is conducting this investigation in accordance with section 731 of the Act. Export prices have been calculated in accordance with section 772(a) of the Act. Because the PRC is a non-market economy within the meaning of section 771(18) of the Act, we calculated normal value (NV) in accordance with section 773(c) of the Act. For a full description of the methodology underlying our preliminary conclusions, see the Preliminary Decision Memorandum. Combination Rates In the Initiation Notice, the Department stated that it would calculate combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.6 Preliminary Determination The Department preliminarily determines that the following weightedaverage dumping margins exist: 5 See Memorandum to Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, ‘‘Certain Corrosion-Resistant Steel Products From the People’s Republic of China, India, Italy, the Republic of Korea, and Taiwan: Scope Comments Decision Memorandum for the Preliminary Determinations,’’ dated December 21, 2015. 6 See Enforcement and Compliance’s Policy Bulletin No. 05.1, regarding, ‘‘Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,’’ (April 5, 2005) (Policy Bulletin 05.1), available on the Department’s Web site at https://enforcement.trade.gov/policy/bull051.pdf. E:\FR\FM\04JAN1.SGM 04JAN1 76 Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices Weightedaverage dumping margin (percent) Exporter Producer Yieh Phui (China) Technomaterial Co., Ltd ................................... Jiangyin Zongcheng Steel Co. Ltd ................................................. Union Steel China .......................................................................... PRC-Wide Entity ............................................................................ Yieh Phui (China) Technomaterial Co., Ltd ................................. Jiangyin Zongcheng Steel Co. Ltd ............................................... Union Steel China ......................................................................... ....................................................................................................... As detailed in the Preliminary Decision Memorandum, Baoshan Iron & Steel Co., Ltd. (Baoshan) and Hebei Iron & Steel Co., Ltd. (Tangshan Branch) (Tangshan), mandatory respondents in this investigation, did not respond to our questionnaire and, thus, did demonstrate that they were entitled to separate rates. Accordingly, we consider Baoshan and Tangshan to be part of the PRC-Wide Entity. Furthermore, because we did not receive quantity and value questionnaire responses or separate rate applications from numerous companies, the PRC-wide entity also includes these non-responsive companies.7 tkelley on DSK3SPTVN1PROD with NOTICES Suspension of Liquidation In accordance with section 733(d)(2) of the Act, we will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of corrosionresistant steel from the PRC 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. Section 733(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 November 5, 2015, we preliminarily found that critical circumstances exist for imports of corrosion-resistant steel from the PRC produced or exported by the PRC-wide entity (which, as noted above, includes Tangshan and Baoshan).8 Accordingly, for the PRCwide entity, in accordance with section 733(e)(2)(A) of the Act, the suspension of liquidation shall apply to 7 See Memorandum to the File, ‘‘Quantity and Value Questionnaire Recipients’’ (July 16, 2015). 8 See 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, 80 FR 68504, 68507 (November 5, 2015). VerDate Sep<11>2014 16:43 Dec 31, 2015 Jkt 238001 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. Pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), the Department will instruct CBP to require a cash deposit 9 equal to the weightedaverage amount by which the NV exceeds U.S. price as follows: (1) The cash deposit rate for the exporter/ producer combination listed in the table above will be the rate identified for that combination in the table; (2) for all combinations of PRC exporters/ producers of merchandise under consideration that have not received their own separate rate above, the cashdeposit rate will be the cash deposit rate established for the PRC-wide entity, 255.80 percent; and (3) for all non-PRC exporters of the merchandise under consideration which have not received their own separate rate above, the cashdeposit rate will be the cash deposit rate applicable to the PRC exporter/producer combination that supplied that non-PRC exporter. These suspension of liquidation instructions will remain in effect until further notice. We normally adjust antidumping duty cash deposit rates by the amount of export subsidies, where appropriate. In the companion CVD investigation, we preliminarily found that Yieh Phui did not receive export subsidies. The rate for all-others companies in the CVD case was based on Yieh Phui’s rate, and thus the all-others companies did not receive an export subsidy rate.10 Therefore, no offset to Yieh Phui’s or the Separate Rate entities’ (these companies were considered ‘‘all-others’’ companies in the companion CVD case) cash deposit rates for export subsidies is necessary. Finally, we are not adjusting the cash 9 See Modification of Regulations Regarding the Practice of Accepting Bonds During the Provisional Measures Period in Antidumping and Countervailing Duty Investigations, 76 FR 61042 (October 3, 2011). 10 See Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products From the People’s Republic of China: Preliminary Affirmative Determination, 80 FR 68843 (November 6, 2015) and accompanying Preliminary Decision Memorandum. PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 255.80 255.80 255.80 255.80 deposit rate applicable to the PRC-wide entity for export subsidies.11 Pursuant to section 777A(f) of the Act, we normally adjust preliminary cash deposit rates for estimated domestic subsidy pass-through, where appropriate. However, in this case we are not granting a domestic subsidy pass-through adjustment. See Preliminary Decision Memorandum. Disclosure and Public Comment We will disclose the calculations performed to interested parties in this proceeding within five days of the date of announcement of this preliminary determination in accordance with 19 CFR 351.224(b). Interested parties may submit case briefs, rebuttal briefs, and hearing requests.12 For a schedule of the deadlines for filing case briefs, rebuttal briefs, and hearing requests, see the Preliminary Decision Memorandum at Section IX. Postponement of Final Determination and Extension of Provisional Measures Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by Petitioners. 19 CFR 351.210(e)(2) requires that requests by respondents for postponement of a final antidumping determination be accompanied by a request for extension of provisional measures from a fourmonth period to a period not more than six months in duration. On December 16, 2015, pursuant to 19 CFR 351.210(b) and (e), Yieh Phui (China) Technomaterial Co., Ltd. requested that, contingent upon an affirmative preliminary determination of sales at LTFV, the Department postpone the final determination and that 11 Id. 12 See E:\FR\FM\04JAN1.SGM 19 CFR 351.309(c)–(d), 19 CFR 351.310(c). 04JAN1 Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices provisional measures be extended to a period not to exceed six months.13 In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) our preliminary determination is affirmative; (2) the requesting exporters account for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, we are postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, we will make our final determination no later than 135 days after the date of publication of this preliminary determination, pursuant to section 735(a)(2) of the Act.14 International Trade Commission (ITC) Notification In accordance with section 733(f) of the Act, we will notify the ITC of our affirmative preliminary determination of sales at LTFV. If our final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after our final determination whether these imports are materially injuring, or threaten material injury to, the U.S. industry. This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c). Dated: December 21, 2015. Paul Piquado, Assistant Secretary for Enforcement and Compliance. tkelley on DSK3SPTVN1PROD with NOTICES Appendix I—Scope of the Investigation The products covered by the scope 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 metal 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 4.75 mm or more than a width exceeding 150 mm and measuring at least twice the thickness. The products described 13 See Letter to the Secretary of Commerce from Yieh Phui ‘‘Corrosion-Resistant Steel Products from China; Request to Extend Final Determination’’ (December 16, 2015). 14 See also 19 CFR 351.210(e). VerDate Sep<11>2014 16:43 Dec 31, 2015 Jkt 238001 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 for above, and (2) where the width and thickness vary for a specific period (e.g., the thickness of certain products with non-rectangular cross-section, the width of certain products with nonrectangular shape, etc.), the measurement at its greatest width or thickness applies. Steel products included in the scope in 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; (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 • 1.25 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 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. Subject merchandise also includes corrosion-resistant steel that has been further processed in a third country, including but not limited to annealing, tempering painting, varnishing, trimming, cutting, punching and/ or slitting or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope corrosion resistant steel. All products that meet the written physical description, and in which the chemistry PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 77 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 measure at least twice the thickness; and • Certain clad stainless flat-rolled products, which are three-layered corrosionresistant steel 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, 7215.20.1500, 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. Appendix II—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Preliminary Determination of Critical Circumstances V. Scope of the Investigation VI. Discussion of the Methodology a. Non-Market Economy Country b. Surrogate Country and Surrogate Values Comments c. Separate Rates d. The PRC-Wide Entity e. Application of Facts Available and Adverse Inferences f. Date of Sale g. Comparisons to Fair Value VII. Currency Conversion VIII. Adjustment under Section 777A(F) of the Act IX. Disclosure and Public Comment X. Verification E:\FR\FM\04JAN1.SGM 04JAN1 78 Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices XI. Conclusion [FR Doc. 2015–32763 Filed 12–31–15; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–580–878] Certain Corrosion-Resistant Steel Products From the Republic of Korea: Affirmative Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the ‘‘Department’’) preliminarily determines that certain corrosionresistant steel products (‘‘corrosionresistant steel’’) from the Republic of Korea (Korea) are being, or are likely to be, sold in the United States at less than fair value (‘‘LTFV’’), as provided in section 733(b) of the Tariff Act of 1930, as amended (‘‘the Act’’). The period of investigation (‘‘POI’’) is April 1, 2014, through March 31, 2015. The estimated weighted-average dumping margins of sales at LTFV are shown in the ‘‘Preliminary Determination’’ section of this notice. Interested parties are invited to comment on this preliminary determination. AGENCY: Effective date: January 4, 2016. Elfi Blum or Lingjun Wang, 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) 482–0197 or (202) 482– 2316, respectively. SUPPLEMENTARY INFORMATION: DATES: FOR FURTHER INFORMATION CONTACT: Background tkelley on DSK3SPTVN1PROD with NOTICES The Department published the notice of initiation of this investigation on June 30, 2015.1 For a complete description of the events that followed the initiation of this investigation, see the memorandum that is dated concurrently with this determination and hereby adopted by this notice.2 A list of topics included in 1 See Certain Corrosion-Resistant Steel Products from Italy, India, the People’s Republic of China, the Republic of Korea, and Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR 37228 (June 30, 2015) (‘‘Initiation Notice’’). 2 See Memorandum from Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Enforcement and Compliance ‘‘Decision Memorandum for the Preliminary Determination in VerDate Sep<11>2014 16:43 Dec 31, 2015 Jkt 238001 the Preliminary Decision Memorandum is included as Appendix II 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 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 found at https://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum and the electronic version of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The product covered by this investigation is corrosion-resistant steel from Korea. For a full description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix I. Scope Comments In accordance with the preamble to the Department’s regulations,3 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., ‘‘scope’’).4 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice, as well as additional language proposed by the Department. For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.5 The Department is preliminarily modifying the scope language as it appeared in the Initiation Notice to clarify that corrosion-resistant steel which is further processed in a third country is covered by the scope of the investigation. See ‘‘Scope of the Investigation,’’ in the Antidumping Duty Investigation of Certain Corrosion-Resistant Steel Products from Korea’’ (‘‘Preliminary Decision Memorandum’’), dated concurrently with this notice. 3 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 4 See Initiation Notice, 80 FR at 37229. 5 See Memorandum to Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, ‘‘Certain Corrosion-Resistant Steel Products From the People’s Republic of China, India, Italy, the Republic of Korea, and Taiwan: Scope Comments Decision Memorandum for the Preliminary Determinations,’’ dated December 21, 2015. PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 Appendix I, which includes the additional clarifying language. Postponement of Deadline for Preliminary Determination On October 14, 2015, the Department published the notice of postponement for the preliminary determination in this investigation in accordance with section 733(c)(1)(B) of the Act and 19 CFR 351.205(f)(1).6 As a result of the 41day postponement, the revised deadline for the preliminary determination of this investigation is now December 21, 2015.7 Methodology The Department is conducting this investigation in accordance with section 731 of the Act. Export prices (‘‘EP’’) have been calculated in accordance with section 772(a) of the Act. Constructed export prices (‘‘CEP’’) have been calculated in accordance with section 772(b) of the Act. Normal value (‘‘NV’’) is calculated in accordance with section 773 of the Act. For a full description of the methodology underlying our preliminary conclusions, see the Preliminary Decision Memorandum. All-Others Rate Consistent with sections 733(d)(1)(A)(ii) and 735(c)(5) of the Act, the Department also calculated an estimated all-others rate. Section 735(c)(5)(B) of the Act provides that the estimated all-others rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually investigated, excluding any zero and de minimis margins, and any margins determined entirely under section 776 of the Act. Where the rates for investigated companies are zero or de minimis, or based entirely on facts othervwise available, section 705(c)(5)(A)(ii) of the Act instructs the Department to establish an ‘‘all others’’ rate using ‘‘any reasonable method.’’ In this investigation, we calculated weighted-average dumping margins for Hyundai Steel Company (Hyundai) and Dongkuk Steel Mill Co., Ltd./Union Steel Manufacturing Co., Ltd. (Dongkuk/ Union), that are above de minimis and which are not based on total facts available. We calculated the all-others rate using a simple average of the 6 See Certain Corrosion-Resistant Steel Products from India, Italy, the People’s Republic of China, the Republic of Korea, and Taiwan: Postponement of Preliminary Determinations of Antidumping Duty Investigations, 80 FR 61793 (October 14, 2015). 7 See id. E:\FR\FM\04JAN1.SGM 04JAN1

Agencies

[Federal Register Volume 81, Number 1 (Monday, January 4, 2016)]
[Notices]
[Pages 75-78]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32763]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-026]


Certain Corrosion-Resistant Steel Products From the People's 
Republic of China: Affirmative Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that certain corrosion-resistant steel products (corrosion-
resistant steel) from the People's Republic of China (PRC) are being, 
or are likely to be, sold in the United States at less than fair value 
(LTFV), as provided in section 733(b) of the Tariff Act of 1930, as 
amended (the Act). The period of investigation (POI) is October 1, 
2014, through March 31, 2015. The estimated weighted-average dumping 
margins are shown in the ``Preliminary Determination'' section of this 
notice. Interested parties are invited to comment on this preliminary 
determination.

DATES: Effective Date: January 4, 2016.

FOR FURTHER INFORMATION CONTACT: Nancy Decker or Andrew Huston, 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-
0196 or (202) 482-4261, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the notice of initiation of this 
investigation on June 30, 2015.\1\ For a complete description of the 
events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum that is dated concurrently with this 
determination and hereby adopted by this notice.\2\ A list of topics 
included in the Preliminary Decision Memorandum is included as Appendix 
II 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 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 found at 
https://enforcement.trade.gov/frn/. The signed Preliminary Decision 
Memorandum and the electronic version of the Preliminary Decision 
Memorandum are identical in content.
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    \1\ See Certain Corrosion-Resistant Steel Products From Italy, 
India, the People's Republic of China, the Republic of Korea, and 
Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR 
37228 (June 30, 2015) (Initiation Notice).
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance ``Decision Memorandum for the Preliminary Determination 
in the Antidumping Duty Investigation of Certain Corrosion-Resistant 
Steel Products from the People's Republic of China'' (Preliminary 
Decision Memorandum), dated concurrently with and hereby adopted by 
this notice.
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Scope of the Investigation

    The product covered by this investigation is corrosion-resistant 
steel from the PRC. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\3\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice, as well as additional language proposed by the 
Department. For a summary of the product coverage comments and rebuttal 
responses submitted to the record for this preliminary determination, 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\5\ The 
Department is preliminarily modifying the scope language as it appeared 
in the Initiation Notice to clarify that corrosion-resistant steel 
which is further processed in a third country is covered by the scope 
of the investigation. See ``Scope of the Investigation,'' in Appendix 
I, which includes the additional clarifying language.
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \4\ See Initiation Notice, 80 FR at 37229.
    \5\ See Memorandum to Gary Taverman, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Corrosion-Resistant Steel Products From the People's 
Republic of China, India, Italy, the Republic of Korea, and Taiwan: 
Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated December 21, 2015.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. Export prices have been calculated in 
accordance with section 772(a) of the Act. Because the PRC is a non-
market economy within the meaning of section 771(18) of the Act, we 
calculated normal value (NV) in accordance with section 773(c) of the 
Act. For a full description of the methodology underlying our 
preliminary conclusions, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for the respondents that are eligible for a 
separate rate in this investigation. Policy Bulletin 05.1 describes 
this practice.\6\
---------------------------------------------------------------------------

    \6\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
the Department's Web site at https://enforcement.trade.gov/policy/bull05-1.pdf.
---------------------------------------------------------------------------

Preliminary Determination

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

[[Page 76]]



------------------------------------------------------------------------
                                                               Weighted-
                                                                average
             Exporter                       Producer            dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Yieh Phui (China) Technomaterial   Yieh Phui (China)              255.80
 Co., Ltd.                          Technomaterial Co., Ltd.
Jiangyin Zongcheng Steel Co. Ltd.  Jiangyin Zongcheng Steel       255.80
                                    Co. Ltd.
Union Steel China................  Union Steel China........      255.80
PRC-Wide Entity..................  .........................      255.80
------------------------------------------------------------------------

    As detailed in the Preliminary Decision Memorandum, Baoshan Iron & 
Steel Co., Ltd. (Baoshan) and Hebei Iron & Steel Co., Ltd. (Tangshan 
Branch) (Tangshan), mandatory respondents in this investigation, did 
not respond to our questionnaire and, thus, did demonstrate that they 
were entitled to separate rates. Accordingly, we consider Baoshan and 
Tangshan to be part of the PRC-Wide Entity. Furthermore, because we did 
not receive quantity and value questionnaire responses or separate rate 
applications from numerous companies, the PRC-wide entity also includes 
these non-responsive companies.\7\
---------------------------------------------------------------------------

    \7\ See Memorandum to the File, ``Quantity and Value 
Questionnaire Recipients'' (July 16, 2015).
---------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(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 the PRC 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.
    Section 733(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 November 5, 2015, we 
preliminarily found that critical circumstances exist for imports of 
corrosion-resistant steel from the PRC produced or exported by the PRC-
wide entity (which, as noted above, includes Tangshan and Baoshan).\8\ 
Accordingly, for the PRC-wide entity, in accordance with section 
733(e)(2)(A) of the Act, the suspension of liquidation 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.
---------------------------------------------------------------------------

    \8\ See 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, 80 FR 68504, 68507 
(November 5, 2015).
---------------------------------------------------------------------------

    Pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit \9\ equal to 
the weighted-average amount by which the NV exceeds U.S. price as 
follows: (1) The cash deposit rate for the exporter/producer 
combination listed in the table above will be the rate identified for 
that combination in the table; (2) for all combinations of PRC 
exporters/producers of merchandise under consideration that have not 
received their own separate rate above, the cash-deposit rate will be 
the cash deposit rate established for the PRC-wide entity, 255.80 
percent; and (3) for all non-PRC exporters of the merchandise under 
consideration which have not received their own separate rate above, 
the cash-deposit rate will be the cash deposit rate applicable to the 
PRC exporter/producer combination that supplied that non-PRC exporter. 
These suspension of liquidation instructions will remain in effect 
until further notice.
---------------------------------------------------------------------------

    \9\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
---------------------------------------------------------------------------

    We normally adjust antidumping duty cash deposit rates by the 
amount of export subsidies, where appropriate. In the companion CVD 
investigation, we preliminarily found that Yieh Phui did not receive 
export subsidies. The rate for all-others companies in the CVD case was 
based on Yieh Phui's rate, and thus the all-others companies did not 
receive an export subsidy rate.\10\ Therefore, no offset to Yieh Phui's 
or the Separate Rate entities' (these companies were considered ``all-
others'' companies in the companion CVD case) cash deposit rates for 
export subsidies is necessary. Finally, we are not adjusting the cash 
deposit rate applicable to the PRC-wide entity for export 
subsidies.\11\
---------------------------------------------------------------------------

    \10\ See Countervailing Duty Investigation of Certain Corrosion-
Resistant Steel Products From the People's Republic of China: 
Preliminary Affirmative Determination, 80 FR 68843 (November 6, 
2015) and accompanying Preliminary Decision Memorandum.
    \11\ Id.
---------------------------------------------------------------------------

    Pursuant to section 777A(f) of the Act, we normally adjust 
preliminary cash deposit rates for estimated domestic subsidy pass-
through, where appropriate. However, in this case we are not granting a 
domestic subsidy pass-through adjustment. See Preliminary Decision 
Memorandum.

Disclosure and Public Comment

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the date of announcement of this 
preliminary determination in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs, rebuttal briefs, and hearing 
requests.\12\ For a schedule of the deadlines for filing case briefs, 
rebuttal briefs, and hearing requests, see the Preliminary Decision 
Memorandum at Section IX.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
---------------------------------------------------------------------------

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
Petitioners. 19 CFR 351.210(e)(2) requires that requests by respondents 
for postponement of a final antidumping determination be accompanied by 
a request for extension of provisional measures from a four-month 
period to a period not more than six months in duration.
    On December 16, 2015, pursuant to 19 CFR 351.210(b) and (e), Yieh 
Phui (China) Technomaterial Co., Ltd. requested that, contingent upon 
an affirmative preliminary determination of sales at LTFV, the 
Department postpone the final determination and that

[[Page 77]]

provisional measures be extended to a period not to exceed six 
months.\13\
---------------------------------------------------------------------------

    \13\ See Letter to the Secretary of Commerce from Yieh Phui 
``Corrosion-Resistant Steel Products from China; Request to Extend 
Final Determination'' (December 16, 2015).
---------------------------------------------------------------------------

    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because (1) our preliminary determination is 
affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six months. Accordingly, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination, pursuant to section 735(a)(2) of the 
Act.\14\
---------------------------------------------------------------------------

    \14\ See also 19 CFR 351.210(e).
---------------------------------------------------------------------------

International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our affirmative preliminary determination of sales at LTFV. If 
our final determination is affirmative, the ITC will determine before 
the later of 120 days after the date of this preliminary determination 
or 45 days after our final determination whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

     Dated: December 21, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products covered by the scope 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 metal 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 4.75 mm or more 
than 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 for above, and
    (2) where the width and thickness vary for a specific period 
(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 in 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; (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
 1.25 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 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.
    Subject merchandise also includes corrosion-resistant steel that 
has been further processed in a third country, including but not 
limited to annealing, tempering painting, varnishing, trimming, 
cutting, punching and/or slitting or any other processing that would 
not otherwise remove the merchandise from the scope of the 
investigation if performed in the country of manufacture of the in-
scope corrosion resistant 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 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 
measure at least twice the thickness; and
     Certain clad stainless flat-rolled products, which are 
three-layered corrosion-resistant steel 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, 7215.20.1500, 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.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Determination of Critical Circumstances
V. Scope of the Investigation
VI. Discussion of the Methodology
    a. Non-Market Economy Country
    b. Surrogate Country and Surrogate Values Comments
    c. Separate Rates
    d. The PRC-Wide Entity
    e. Application of Facts Available and Adverse Inferences
    f. Date of Sale
    g. Comparisons to Fair Value
VII. Currency Conversion
VIII. Adjustment under Section 777A(F) of the Act
IX. Disclosure and Public Comment
X. Verification

[[Page 78]]

XI. Conclusion

[FR Doc. 2015-32763 Filed 12-31-15; 8:45 am]
 BILLING CODE 3510-DS-P
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