Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products From the Republic of Korea: Final Affirmative Determination, and Final Affirmative Critical Circumstances Determination, in Part, 35310-35313 [2016-12978]

Download as PDF 35310 Federal Register / Vol. 81, No. 106 / Thursday, June 2, 2016 / Notices Dated: May 24, 2016. Paul Piquado, Assistant Secretary for Enforcement and Compliance. Appendix I List of Topics Discussed in the Final Decision Memorandum I. Summary II. Background III. Final Determination of Critical Circumstances, in Part IV. Scope of the Investigation V. Application of the Countervailing Duty Law to Imports From the PRC VI. Subsidies Valuation Information VII. Benchmarks and Discount Rates VIII. Use of Facts Otherwise Available and Adverse Inferences IX. Analysis of Programs X. Analysis of Comments Comment 1: Whether Respondent’s Producers of Inputs Are ‘‘Authorities’’ Comment 2: Whether Inputs for LTAR Are Specific Comment 3: Whether To Use a Tier One Benchmark To Determine the Adequacy of Remuneration for Inputs for LTAR Comment 4: Whether the Provision of Electricity for LTAR Is Countervailable Comment 5: Whether the GOC Provided Policy Loans to YPC During the POI Comment 6: Whether the Export Buyer’s Credit Program Was Used by Respondent Comment 7: Correcting VAT in the HotRolled Steel and Primary Aluminum Benchmarks Comment 8: Whether To Apply AFA to YCL’s Sales From Other PRC Producers of Corrosion-Resistant Steel XI. Recommendation asabaliauskas on DSK3SPTVN1PROD with NOTICES Appendix II Scope of the Investigation The products covered by this investigation are certain flat-rolled steel products, either clad, plated, or coated with corrosionresistant 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 VerDate Sep<11>2014 18:30 Jun 01, 2016 Jkt 238001 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 crosssection, the width of certain products with non-rectangular shape, etc.), the measurement at its greatest width or thickness applies. Steel products included in the scope of 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. 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: PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 • 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 corrosionresistant 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. 2016–12962 Filed 6–1–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–580–879] Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products From the Republic of Korea: Final Affirmative Determination, and Final Affirmative Critical Circumstances Determination, in Part Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain corrosion-resistant steel products (corrosion-resistant steel) from the Republic of Korea (Korea) as provided in section 705 of the Tariff Act of 1930, as amended (the Act). For AGENCY: E:\FR\FM\02JNN1.SGM 02JNN1 Federal Register / Vol. 81, No. 106 / Thursday, June 2, 2016 / Notices information on the estimated subsidy rates, see the ‘‘Final Determination’’ section of this notice. The period of investigation is January 1, 2014, through December 31, 2014. DATES: Effective Date: June 2, 2016. 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 or (202) 482– 1396, respectively. SUPPLEMENTARY INFORMATION: Background The Department published the Preliminary Determination on November 6, 2015.1 A summary of the events that occurred since the Department published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Final Decision Memorandum.2 The Final 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 http://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 Final Decision Memorandum can be accessed directly at http://enforcement.trade.gov/ frn/. The signed Final Decision Memorandum and the electronic version are identical in content. Scope Comments In accordance with the Preliminary Scope Determination,3 the Department asabaliauskas on DSK3SPTVN1PROD with NOTICES 1 See Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products from the Republic of Korea: Preliminary Affirmative Determination, 80 FR 68842 (November 6, 2015) (Preliminary Determination). 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products from the Republic of Korea,’’ (Final Decision Memorandum), dated concurrently with this determination and hereby adopted by this notice. 3 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 (Preliminary Scope Decision Memorandum). See also Memorandum to the File, ‘‘Certain CorrosionResistant Steel Products From the People’s Republic of China, India, Italy, the Republic of Korea, and VerDate Sep<11>2014 18:30 Jun 01, 2016 Jkt 238001 set aside a period of time for parties to address scope issues in case briefs or other written comments on scope issues. For a summary of the product coverage comments and rebuttal responses submitted to the record of this final determination, and accompanying discussion and analysis of all comments timely received, see the Final Scope Decision Memorandum.4 The Final Scope Decision Memorandum is incorporated by, and hereby adopted by, this notice. Scope of the Investigation The product covered by this investigation is corrosion-resistant steel from the Korea. For a complete description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix II of this notice. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by parties in this investigation are discussed in the Final Decision Memorandum. A list of the issues that parties raised, and to which we responded in the Final Decision Memorandum, is attached to this notice at Appendix I. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, and minor corrections presented at verification, we made certain changes to the respondents’ subsidy rate calculations since the Preliminary Determination. For a discussion of these changes, see the Final Decision Memorandum.5 Steel Co., Ltd. (Dongbu).6 Upon further analysis of the data following the Preliminary Determination, we are not modifying our findings for the Final Determination.7 Specifically, in accordance with section 705(a)(2) of the Act, we continue to find that critical circumstances exist with respect imports from all other producers or exporters, but do not exist for Union/ Dongkuk and Dongbu. Final Determination In accordance with section 705(c)(1)(B)(i) of the Act, we calculated a rate for Union/Dongkuk and Dongbu, the two exporters/producers of subject merchandise selected for individual examination in this investigation. In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the Act, for companies not individually investigated, we apply an ‘‘all-others’’ rate, which is normally calculated by weighting the subsidy rates of the individual companies selected as respondents with those companies’ export sales of the subject merchandise to the United States. Under section 705(c)(5)(A)(i) of the Act, the all-others rate should exclude zero and de minimis rates calculated for the exporters and producers individually investigated, and any rates determined entirely under section 776 of the Act. We therefore have excluded the rate for Union/Dongkuk from the all-others rate. Because the only individually calculated rate that is not zero, de minimis, or based on facts otherwise available is the rate calculated for Dongbu, in accordance with section 705(c)(5)(A)(i) of the Act, the rate calculated for Dongbu is assigned as the ‘‘all-others’’ rate. The estimated countervailable subsidy rates are as follows: Final Affirmative Determination of Critical Circumstances, in Part Prior to the Preliminary Determination, the Department preliminarily found that critical circumstances exist with respect to imports of corrosion-resistant steel from Korea for all other companies, excepting mandatory respondents Union Steel Manufacturing Co. Ltd./Dongkuk Steel Mill Co., Ltd. (Union/Dongkuk) and Dongbu Steel Co., Ltd./Dongbu Incheon Taiwan: Correction to Preliminary Determination Scope Memorandum,’’ January 29, 2016. 4 See Memorandum to Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, ‘‘Scope Comments Decision Memorandum for the Final Determinations,’’ dated concurrently with this notice. 5 See Final Decision Memorandum. PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 35311 Company Union Steel Manufacturing Co. Ltd./Dongkuk Steel Mill Co., Ltd. Subsidy rate 0.72 percent (de minimis). 6 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 (November 5, 2015). Dongbu Incheon Steel Co., Ltd. (Dongbu Incheon) is not listed in this notice; however, we preliminarily determined that Dongbu Incheon is a wholly-owned subsidiary of Dongbu Steel Co., Ltd. and calculated a single countervailing duty rate for both companies. Thus, we stated that the suspension of liquidation for both companies would begin on the date of publication of the Preliminary Determination. See Preliminary Determination, 80 FR at 68842. 7 For a full description of the methodology and results of our analysis, see the Final Decision Memorandum. E:\FR\FM\02JNN1.SGM 02JNN1 35312 Federal Register / Vol. 81, No. 106 / Thursday, June 2, 2016 / Notices Company Dongbu Steel Co., Ltd./ Dongbu Incheon Steel Co., Ltd. All-Others .............................. Subsidy rate 1.19 percent. 1.19 percent. asabaliauskas on DSK3SPTVN1PROD with NOTICES Continuation of Suspension of Liquidation As a result of our Preliminary Determination and pursuant to section 703(d) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of subject merchandise from Korea, other than subject merchandise produced/ exported by Union/Dongkuk which received a de minimis countervailable subsidy rate in the Preliminary. Determination Pursuant to section 703(d) of the Act, we subsequently instructed CBP to suspend liquidation of all entries of merchandise under consideration from Korea, with the exception of Union/ Dongkuk, that were entered or withdrawn from warehouse, for consumption, on or after August 8, 2015 (for those entities for which we found critical circumstances exist) or on or after November 6, 2015, the date of publication of the Preliminary Determination in the Federal Register (for those entities for which we did not find critical circumstances exist). In accordance with section 703(d) of the Act, we issued instructions to CBP to discontinue the suspension of liquidation for CVD purposes for subject merchandise entered, or withdrawn from warehouse, on or after March 4, 2016, but to continue the suspension of liquidation of all entries from August 8, 2015, or November 6, 2015, as the case may be, through March 3, 2016. If the U.S. International Trade Commission (the ITC) issues a final affirmative injury determination, we will issue a CVD order and will reinstate the suspension of liquidation under section 706(a) of the Act and will require a cash deposit of estimated CVDs for such entries of subject merchandise in the amounts indicated above that are not de minimis. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all non- VerDate Sep<11>2014 18:30 Jun 01, 2016 Jkt 238001 privileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance. Notification Regarding Administrative Protective Orders In the event the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a violation subject to sanction. This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act. Dated: May 24, 2016. Paul Piquado, Assistant Secretary for Enforcement and Compliance. Appendix I—List of Topics Discussed in the Final Decision Memorandum I. Summary II. Background III. Final Determination of Critical Circumstances, in Part IV. Scope of the Investigation V. Subsidies Valuation Information VI. Benchmarks and Discount Rates VII. Analysis of Programs VIII. Analysis of Comments Comment 1: Whether the Department Should Find the Provision of Electricity for Less Than Adequate Remuneration (LTAR) Countervailable Based on Adverse Facts Available Comment 2: Whether the Provision of Electricity Provides a Benefit Comment 3: Whether the Department Should Use Other Submitted Data to Measure the Adequacy of Remuneration for Electricity Comment 4: Whether Benefits Received From Dongbu’s Voluntary Debt Restructuring are Countervailable Comment 5: Whether Benefits Should Be Calculated for Loans and Bonds Which Were Issued to Dongbu by GOK-Owned Banks Prior to Its Voluntary Restructuring Comment 6: Whether Dongbu was Creditworthy in 2014 and Whether the Department Should Recalculate Benefits Using Creditworthy Benchmarks PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 Comment 7: Whether Nonghyup Bank is an ‘‘Authority’’ and Loans Received From Nonghyup Bank are Countervailable Comment 8: Whether the Department Should Find That the Provision of Natural Gas for LTAR is Countervailable IX. Recommendation Appendix II—Scope of the Investigation The products covered by this investigation are certain flat-rolled steel products, either clad, plated, or coated with corrosionresistant 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 crosssection, the width of certain products with non-rectangular shape, etc.), the measurement at its greatest width or thickness applies. Steel products included in the scope of 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 E:\FR\FM\02JNN1.SGM 02JNN1 asabaliauskas on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 81, No. 106 / Thursday, June 2, 2016 / Notices • 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. 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 measures at least twice the thickness; and • Certain clad stainless flat-rolled products, which are three-layered corrosionresistant 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, VerDate Sep<11>2014 18:30 Jun 01, 2016 Jkt 238001 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. 2016–12978 Filed 6–1–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–583–856] Certain Corrosion-Resistant Steel Products From Taiwan: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (‘‘Department’’) determines that certain corrosion-resistant steel products (‘‘corrosion-resistant steel’’) from Taiwan are being, or are likely to be, sold in the United States at less than fair value (‘‘LTFV’’), as provided in section 735(a) of the Tariff Act of 1930, as amended (‘‘the Act’’). The period of investigation (‘‘POI’’) is April 1, 2014, through March 31, 2015. The final dumping margins of sales at LTFV are listed below in the ‘‘Final Determination’’ section of this notice. DATES: Effective Date: June 2, 2016. FOR FURTHER INFORMATION CONTACT: Shanah Lee or Paul Stolz, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–6386 or (202) 482– 4474, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On January 4, 2016, the Department published the Preliminary Determination of this antidumping duty (‘‘AD’’) investigation and invited parties to comment.1 As provided in section 782(i) of the Act, in January and April 1 See Certain Corrosion-Resistant Steel Products from Taiwan: Negative Preliminary Determination of Sales at Less Than Fair Value, 81 FR 72 (January 4, 2016) (‘‘Preliminary Determination’’). See also Antidumping Duty Investigations of CorrosionResistant Steel Products from India, Italy, the People’s Republic of China, the Republic of Korea, and Taiwan: Notice of Correction to Preliminary Antidumping Determinations, 81 FR 6236 (February 5, 2016) (‘‘Scope Correction Notice’’). PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 35313 2016, the Department verified the sales and cost data reported by Prosperity Tieh Enterprise Co., Ltd. (‘‘PT’’), Yieh Phui Enterprise Co., Ltd. (‘‘YP’’), and Synn Industrial Co., Ltd. (‘‘Synn’’). In April 2016, Petitioner,2 YP, and PT submitted case briefs and rebuttal briefs. For a complete discussion of the events that occurred since the Preliminary Determination, see the Issues and Decision Memorandum.3 Also, as explained in the memorandum from the Acting Assistant Secretary for Enforcement and Compliance, the Department exercised its authority to toll all administrative deadlines due to the recent closure of the Federal Government.4 As a consequence, all deadlines in this segment of the proceeding have been extended by four business days. The revised deadline for the final determination is now May 24, 2016. Scope of the Investigation The product covered by this investigation is corrosion-resistant steel from Taiwan. For a complete description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix II of this notice. Scope Comments In accordance with the Preliminary Scope Determination,5 the Department set aside a period of time for parties to address scope issues in case briefs or other written comments on scope issues. For a summary of the product coverage comments and rebuttal 2 Petitioners are United States Steel Corporation, Nucor Corporation, ArcelorMittal USA, AK Steel Corporation, Steel Dynamics, Inc., and California Steel Industries, Inc. AK Steel Corporation was the only Petitioner to file comments in this case. 3 See Memorandum from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Enforcement and Compliance, ‘‘Issues and Decision Memorandum for the Final Determination in the Antidumping Duty Investigation of Certain Corrosion-Resistant Steel Products from Taiwan,’’ dated concurrently with this notice (‘‘Issues and Decision Memorandum’’). 4 See Memorandum to the File from Ron Lorentzen, Acting A/S for Enforcement & Compliance, ‘‘Tolling of Administrative Deadlines As a Result of the Government Closure During Snowstorm Jonas’’ dated January 27, 2016. 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 (‘‘Preliminary Scope Decision Memorandum’’). See also Memorandum to the File, ‘‘Certain CorrosionResistant Steel Products From the People’s Republic of China, India, Italy, the Republic of Korea, and Taiwan: Correction to Preliminary Determination Scope Memorandum,’’ dated January 29, 2016. E:\FR\FM\02JNN1.SGM 02JNN1

Agencies

[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35310-35313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12978]


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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: Final Affirmative 
Determination, and Final Affirmative Critical Circumstances 
Determination, in Part

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain corrosion-resistant steel products (corrosion-resistant 
steel) from the Republic of Korea (Korea) as provided in section 705 of 
the Tariff Act of 1930, as amended (the Act). For

[[Page 35311]]

information on the estimated subsidy rates, see the ``Final 
Determination'' section of this notice. The period of investigation is 
January 1, 2014, through December 31, 2014.

DATES: Effective Date: June 2, 2016.

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 
or (202) 482-1396, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the Preliminary Determination on November 
6, 2015.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Final Decision Memorandum.\2\ The Final 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 http://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 Final 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Final Decision Memorandum and 
the electronic version are identical in content.
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    \1\ See Countervailing Duty Investigation of Certain Corrosion-
Resistant Steel Products from the Republic of Korea: Preliminary 
Affirmative Determination, 80 FR 68842 (November 6, 2015) 
(Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Corrosion-Resistant Steel Products from the Republic of 
Korea,'' (Final Decision Memorandum), dated concurrently with this 
determination and hereby adopted by this notice.
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Scope Comments

    In accordance with the Preliminary Scope Determination,\3\ the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.
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    \3\ 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 (Preliminary Scope 
Decision Memorandum). See also Memorandum to the File, ``Certain 
Corrosion-Resistant Steel Products From the People's Republic of 
China, India, Italy, the Republic of Korea, and Taiwan: Correction 
to Preliminary Determination Scope Memorandum,'' January 29, 2016.
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    For a summary of the product coverage comments and rebuttal 
responses submitted to the record of this final determination, and 
accompanying discussion and analysis of all comments timely received, 
see the Final Scope Decision Memorandum.\4\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
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    \4\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Scope Comments Decision Memorandum for the Final Determinations,'' 
dated concurrently with this notice.
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Scope of the Investigation

    The product covered by this investigation is corrosion-resistant 
steel from the Korea. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix II 
of this notice.

Analysis of Subsidy Programs and Comments Received

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

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Final Decision Memorandum.\5\
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    \5\ See Final Decision Memorandum.
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Final Affirmative Determination of Critical Circumstances, in Part

    Prior to the Preliminary Determination, the Department 
preliminarily found that critical circumstances exist with respect to 
imports of corrosion-resistant steel from Korea for all other 
companies, excepting mandatory respondents Union Steel Manufacturing 
Co. Ltd./Dongkuk Steel Mill Co., Ltd. (Union/Dongkuk) and Dongbu Steel 
Co., Ltd./Dongbu Incheon Steel Co., Ltd. (Dongbu).\6\ Upon further 
analysis of the data following the Preliminary Determination, we are 
not modifying our findings for the Final Determination.\7\ 
Specifically, in accordance with section 705(a)(2) of the Act, we 
continue to find that critical circumstances exist with respect imports 
from all other producers or exporters, but do not exist for Union/
Dongkuk and Dongbu.
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    \6\ 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 (November 5, 
2015). Dongbu Incheon Steel Co., Ltd. (Dongbu Incheon) is not listed 
in this notice; however, we preliminarily determined that Dongbu 
Incheon is a wholly-owned subsidiary of Dongbu Steel Co., Ltd. and 
calculated a single countervailing duty rate for both companies. 
Thus, we stated that the suspension of liquidation for both 
companies would begin on the date of publication of the Preliminary 
Determination. See Preliminary Determination, 80 FR at 68842.
    \7\ For a full description of the methodology and results of our 
analysis, see the Final Decision Memorandum.
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Union/Dongkuk and Dongbu, the two exporters/
producers of subject merchandise selected for individual examination in 
this investigation.
    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of 
the Act, for companies not individually investigated, we apply an 
``all-others'' rate, which is normally calculated by weighting the 
subsidy rates of the individual companies selected as respondents with 
those companies' export sales of the subject merchandise to the United 
States. Under section 705(c)(5)(A)(i) of the Act, the all-others rate 
should exclude zero and de minimis rates calculated for the exporters 
and producers individually investigated, and any rates determined 
entirely under section 776 of the Act. We therefore have excluded the 
rate for Union/Dongkuk from the all-others rate.
    Because the only individually calculated rate that is not zero, de 
minimis, or based on facts otherwise available is the rate calculated 
for Dongbu, in accordance with section 705(c)(5)(A)(i) of the Act, the 
rate calculated for Dongbu is assigned as the ``all-others'' rate. The 
estimated countervailable subsidy rates are as follows:

------------------------------------------------------------------------
                  Company                           Subsidy rate
------------------------------------------------------------------------
Union Steel Manufacturing Co. Ltd./Dongkuk  0.72 percent (de minimis).
 Steel Mill Co., Ltd.

[[Page 35312]]

 
Dongbu Steel Co., Ltd./Dongbu Incheon       1.19 percent.
 Steel Co., Ltd.
All-Others................................  1.19 percent.
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from Korea, other than subject merchandise produced/
exported by Union/Dongkuk which received a de minimis countervailable 
subsidy rate in the Preliminary.

Determination

    Pursuant to section 703(d) of the Act, we subsequently instructed 
CBP to suspend liquidation of all entries of merchandise under 
consideration from Korea, with the exception of Union/Dongkuk, that 
were entered or withdrawn from warehouse, for consumption, on or after 
August 8, 2015 (for those entities for which we found critical 
circumstances exist) or on or after November 6, 2015, the date of 
publication of the Preliminary Determination in the Federal Register 
(for those entities for which we did not find critical circumstances 
exist). In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after March 4, 2016, but to continue the suspension of 
liquidation of all entries from August 8, 2015, or November 6, 2015, as 
the case may be, through March 3, 2016.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above that are not de 
minimis. If the ITC determines that material injury, or threat of 
material injury, does not exist, this proceeding will be terminated and 
all estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

ITC Notification

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

Notification Regarding Administrative Protective Orders

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

    Dated: May 24, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances, in Part
IV. Scope of the Investigation
V. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Whether the Department Should Find the Provision of 
Electricity for Less Than Adequate Remuneration (LTAR) 
Countervailable Based on Adverse Facts Available
    Comment 2: Whether the Provision of Electricity Provides a 
Benefit
    Comment 3: Whether the Department Should Use Other Submitted 
Data to Measure the Adequacy of Remuneration for Electricity
    Comment 4: Whether Benefits Received From Dongbu's Voluntary 
Debt Restructuring are Countervailable
    Comment 5: Whether Benefits Should Be Calculated for Loans and 
Bonds Which Were Issued to Dongbu by GOK-Owned Banks Prior to Its 
Voluntary Restructuring
    Comment 6: Whether Dongbu was Creditworthy in 2014 and Whether 
the Department Should Recalculate Benefits Using Creditworthy 
Benchmarks
    Comment 7: Whether Nonghyup Bank is an ``Authority'' and Loans 
Received From Nonghyup Bank are Countervailable
    Comment 8: Whether the Department Should Find That the Provision 
of Natural Gas for LTAR is Countervailable
IX. Recommendation

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

[[Page 35313]]

 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.
    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 
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. 2016-12978 Filed 6-1-16; 8:45 am]
 BILLING CODE 3510-DS-P