Antidumping Duty Investigation of Stainless Steel Sheet and Strip From the People's Republic of China: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, 9716-9719 [2017-02576]

Download as PDF 9716 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices 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 nonprivileged 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 serves as the only reminder to parties subject to an APO of their responsibility concerning the destruction 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: February 1, 2017. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. asabaliauskas on DSK3SPTVN1PROD with NOTICES 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 Comments V. Scope of the Investigation VI. Application of the Countervailing Duty Law to Imports from the PRC VII. Subsidies Valuation Information VIII. Benchmarks and Discount Rates IX. Use of Facts Otherwise Available and Adverse Inferences X. Analysis of Programs XI. Analysis of Comments Comment 1: Subsidies Received by Taigang Xinlei Comment 2: Previously Unreported Government Grants Received by the Taigang Companies Discovered at Verification Comment 3: TISCO’s Exemption from Distributing Dividends to the State Comment 4: Equity Investments in Taigang Wanbang Comment 5: The Department’s Preliminary Calculations Relating to the Provision of Land for LTAR Significantly Understate the Countervailable Benefit to TISCO VerDate Sep<11>2014 17:36 Feb 07, 2017 Jkt 241001 Comment 6: The Department’s Preliminary Calculations Contain Errors in Certain Formulas for Calculating the Benefit from the Provision of Electricity for LTAR Comment 7: The Department Must Use Taigang’s Consolidated Sales in Calculating Any Subsidy Rate with Respect to Subsidies Received Directly by Taigang Comment 8: The Correct Benchmark for Nickel Pig Iron Comment 9: Provision of Inputs and Financing from Taigang’s Cross-Owned Affiliates Comment 10: Countervailability of Certain Chromium Purchases Comment 11: Use of AFA in Finding Deed Tax Exemption Used by Taigang/ Untimely Submission XII. Recommendation Appendix II—Scope of the Investigation The merchandise covered by this investigation is stainless steel sheet and strip, whether in coils or straight lengths. Stainless steel is an alloy steel containing, by weight, 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements. The subject sheet and strip is a flatrolled product with a width that is greater than 9.5 mm and with a thickness of 0.3048 mm and greater but less than 4.75 mm, and that is annealed or otherwise heat treated, and pickled or otherwise descaled. The subject sheet and strip may also be further processed (e.g., cold-rolled, annealed, tempered, polished, aluminized, coated, painted, varnished, trimmed, cut, punched, or slit, etc.) provided that it maintains the specific dimensions of sheet and strip set forth above following such processing. The products described include products regardless of shape, and include products of either rectangular or non-rectangular crosssection 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 nonrectangular shape, etc.), the measurement at its greatest width or thickness applies. 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. Subject merchandise includes stainless steel sheet and strip that has been further processed in a third country, including but not limited to cold-rolling, annealing, tempering, polishing, aluminizing, coating, painting, varnishing, trimming, cutting, punching, and/or slitting, or any other PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the stainless steel sheet and strip. Excluded from the scope of this investigation are the following: (1) Sheet and strip that is not annealed or otherwise heat treated and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled stainless steel products of a thickness of 4.75 mm or more); and (3) flat wire (i.e., cold-rolled sections, with a mill edge, rectangular in shape, of a width of not more than 9.5 mm). The products under investigation are currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive. [FR Doc. 2017–02577 Filed 2–7–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–042] Antidumping Duty Investigation of Stainless Steel Sheet and Strip From the People’s Republic of China: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Effective February 8, 2017. SUMMARY: The Department of Commerce (the Department) determines that imports of stainless steel sheet and strip (stainless sheet and strip) from the People’s Republic of China (PRC) is being, or is likely to be, sold in the United States at less than fair value AGENCY: E:\FR\FM\08FEN1.SGM 08FEN1 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices (LTFV). The period of investigation (POI) is July 1, 2015, through December 31, 2015. The final weighted-average dumping margins for the investigation on stainless sheet and strip from the PRC are listed below in the ‘‘Final Determination’’ section of this notice. We continue to find that critical circumstances exist for the PRC-wide entity and the separate rate companies that were not selected for individual examination. FOR FURTHER INFORMATION CONTACT: Alexander Cipolla, or Kathryn Wallace, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–4956 or (202) 482–6251 respectively. SUPPLEMENTARY INFORMATION: asabaliauskas on DSK3SPTVN1PROD with NOTICES Background On September 19, 2016, the Department published its affirmative preliminary determination that stainless sheet and strip from the PRC is being, or is likely to be, sold in the United States at less than fair value, as provided by section 733 of the Tariff Act of 1930, as amended (the Act).1 The following events occurred since the Preliminary Determination. On October 21, 2016, the Department issued a postponement of the Final Determination.2 We invited interested party comments on the Preliminary Determination in this investigation. On November 2, 2016, mandatory respondent, Shanxi Taigang Stainless Steel Co., Ltd (Taigang) submitted a case brief. On November 14, 2016, Petitioners filed a rebuttal case brief.3 On January 17, 2017, the Department held hearing with respect to this investigation. For a complete discussion of the issues raised in the case and rebuttal briefs, see the Issues and Decision Memorandum.4 1 See Stainless Steel Sheet and Strip From the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Preliminary Affirmative Determination of Critical Circumstances, 81 FR 64135 (September 19, 2016) (Preliminary Determination) and the accompanying Preliminary Determination Memorandum. 2 See Stainless Steel Sheet and Strip from the People’s Republic of China: Postponement of Final Determination of Sales at Less Than Fair Value Investigation, 81 FR 72776 (October 21, 2016). 3 Petitioners are AK Steel Corporation, Allegheny Ludlum, LLC d/b/a ATI Flat Rolled Products, North American Stainless, and Outokumpu Stainless USA, LLC. 4 See Memorandum from Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance, regarding ‘‘Decision Memorandum for the Final VerDate Sep<11>2014 17:36 Feb 07, 2017 Jkt 241001 Period of Investigation The POI is July 1, 2015, through December 31, 2015. This period corresponds to the two most recent fiscal quarters prior to the month of the filing of the petition.5 Scope of the Investigation The product covered by this investigation is stainless sheet and strip. For a complete description of the scope of this investigation, see Appendix I. Final Affirmative Determination of Critical Circumstances We continue to find that critical circumstances exist for the PRC-wide entity and non-selected respondents eligible for a separate rate, in accordance with section 735(a)(3) of the Act and 19 CFR 351.206. For a full description of the methodology and results of our analysis, see the Preliminary Determination, unchanged in the Issues and Decision Memorandum. Separate Rates In the Preliminary Determination, we found that evidence provided by Taiyuan Ridetaixing Precision Stainless Steel Incorporated Co., Ltd. (Ridetaixing), and Zhangjiagang Pohang Stainless Steel Co., Ltd. (ZPSS) supported finding an absence of both de jure and de facto government control, and, therefore, we preliminarily granted a separate rate to each of these companies.6 In addition, in the Preliminary Determination, we found Tiancheng Stainless Steel Products Co., Ltd. (Tiancheng), Taigang and Tianjin Taigang Daming Metal Product Co., Ltd. (Daming) to be ineligible for a separate rate.7 For the final determination, we continue to find that Ridetaixing and ZPSS are eligible for separate rates. With respect to Taigang, we determined in the Preliminary Determination that it failed to demonstrate an absence of de facto government contro, and, thus, the Department did not grant Taigang a separate rate. For this final determination, we continue to find, based on record evidence, that Taigang failed to demonstrate an absence of de facto government control, and we are, therefore, not granting Taigang a separate rate. For further discussion of Determination in the Antidumping Duty Investigation of Stainless Steel Sheet and Strip from the People’s Republic of China,’’ (February 1, 2017) (Issues and Decision Memorandum), which is hereby adopted by this notice. 5 See 19 CFR 351.204(b)(1). 6 See Preliminary Decision Memorandum at 10– 13. 7 Id. at 12. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 9717 this issue, see the Issues and Decision Memorandum at Issue 5. We have looked to sections 735(c)(5)(A)–(B) of the Act for guidance in determining the rate applicable to separate rate respondents not selected for individual examination. Under section 735(c)(5)(A) of the Act, the rate for all other companies that have not been individually examined is normally an amount equal to the weighted average of the estimated weightedaverage dumping margins established for exporters and producers individually investigated, excluding any zero and de minimis margins, and any margins determined entirely on the basis of facts available. In this investigation, both exporters selected for individual examination have been found to be part of the PRC-wide entity, which is receiving an antidumping duty rate based entirely on facts otherwise available with an adverse inference. Therefore, looking to section 735(c)(5)(B) of the Act, the Department is using ‘‘any reasonable method’’ to determine the rate for exporters that are not being individually examined and found to be entitled to a separate rate, as we did in the Preliminary Determination. As such, we continue to assign the simple average of the two petition rates (i.e., 63.86 percent) to the separate rate applicants not individually examined.8 Analysis of Comments Received All issues raised in the case and rebuttal briefs by parties to this investigation are addressed in the Issues and Decision Memorandum accompanying this notice, which is hereby adopted by this notice. A list of the issues which the parties raised and to which the Department responded in the memorandum appears in Appendix II of this notice. The Issues and 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 Issues and Decision Memorandum can be accessed directly at http:// enforcement.trade.gov/frn/. The signed and electronic versions of the memorandum are identical in content. 8 See E:\FR\FM\08FEN1.SGM Preliminary Determination. 08FEN1 9718 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, we made certain changes to the separate rate and PRC-wide entity cash deposit rates since the Preliminary Determination. For a discussion of these changes, see the Issues and Decision Memorandum, dated concurrently with this notice.9 PRC-Wide Rate In our Preliminary Determination, we found that the PRC-wide entity, which includes Taigang, Daming, and other PRC exporters and/or producers that did not respond to the Department’s requests for information, failed to provide necessary information, withheld information requested by the Department, failed to provide information in a timely manner, and significantly impeded this proceeding by not submitting the requested information. As a result, we preliminarily determined to calculate the PRC-wide rate on the basis of adverse facts available (AFA), pursuant to sections 776(a)–(b) of the Act. As AFA, we determined to use the highest petition margin (76.64 percent) and corroborated that margin. For this final determination, we continue to rely on AFA in determining the rate for the PRC-wide entity and to select 76.64 percent as the dumping margin for the PRC-wide entity. 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.10 Policy Bulletin 05.1 describes this practice.11 Final Determination The Department determines that imports of stainless sheet and strip from the PRC is being, or is likely to be, sold in the United States at LTFV as provided in section 735 of the Act and determines that the estimated final weighted-average dumping margins are as follows: Weightedaverage dumpin margin (%) Exporter Producer Taiyuan Ridetaixing Precision Stainless Steel Incorporated Co., Ltd. Zhangjiagang Pohang Stainless Steel Co., Ltd ........... PRC-Wide Entity ........................................................... Taiyuan Ridetaixing Precision Stainless Steel Incorporated Co., Ltd. Zhangjiagang Pohang Stainless Steel Co., Ltd ........... PRC-Wide Entity ........................................................... Cash deposit (%) 63.86 45.26 63.86 76.64 45.26 58.04 As noted above, for this final determination, the Department found that critical circumstances exist with respect to imports of the subject merchandise from the PRC-wide entity and the non-selected separate rate respondents. Therefore, in accordance with section 735(c)(4)(A) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all imports of the merchandise subject to the investigation, that were entered or withdrawn from warehouse, for consumption on or after June 21, 2016, 90 days prior to publication of the Preliminary Determination in the Federal Register, and require a cash deposit for such entries as noted below. Pursuant to 19 CFR 351.205(d) and section 735(c)(1)(B)(ii) of the Act, we will instruct CBP to require a cash deposit 12 for all suspended entries at an ad valorem rate equal to the weightedaverage amount by which normal value exceeds U.S. price, as follows: (1) The cash deposit rate for the exporter/ producer combination listed in the table above will be the dumping margin identified for that combination in the table adjusted, where appropriate,13 for export subsidies and estimated domestic subsidy pass-through; 14 (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 dumping margin established for the PRC-wide entity, which will be adjusted, where appropriate for export subsidies and estimated domestic subsidy passthrough; 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 and cash deposit instructions will remain in effect until further notice. The cash deposit rates were adjusted by the countervailing duty attributable to export subsidies. Pursuant to 777A(f) of the Act, we are also adjusting final cash deposit rates for estimated domestic subsidy pass-through, where appropriate.15 9 See Issues and Decision Memorandum, dated concurrently with this memorandum. 10 See Stainless Steel Sheet and Strip from the People’s Republic of China: Initiation of Antidumping Duty Investigation, 81 FR 12711 (March 10, 2016) (Initiation Notice). 11 See Enforcement and Compliance Policy Bulletin No. 05.1 ‘‘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 http:// enforcement.trade.gov/policy/bull05-1.pdf. 12 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). 13 If the ITC makes an affirmative final determination, we will adjust the cash deposit rates by deducting applicable final export subsidy and domestic pass-through rates from the final dumping margins. 14 See sections 772(c)(1)(C) and 777A(f) of the Act, respectively. Unlike in administrative reviews, the Department makes an adjustment for export subsidies in investigations not in the margincalculation program, but to the cash-deposit rate. See Notice of Final Determination of Sales at Less Than Fair Value, and Negative Determination of Critical Circumstances: Certain Lined Paper Products from India, 71 FR 45012 (August 8, 2006), and accompanying Issues and Decision memorandum at Comment 1. 15 Id. at Issue 2. Disclosure We intend to disclose to parties the calculations performed in this proceeding within five days of any public announcement of this notice in accordance with 19 CFR 351.224(b). asabaliauskas on DSK3SPTVN1PROD with NOTICES Continuation of Suspension of Liquidation VerDate Sep<11>2014 17:36 Feb 07, 2017 Jkt 241001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 International Trade Commission Notification In accordance with section 735(d) of the Act, we will notify the International Trade Commission (ITC) of the final affirmative determination of sales at less than fair value. Because the final determination in this proceeding is E:\FR\FM\08FEN1.SGM 08FEN1 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices affirmative, the ITC will make its final determination, in accordance with section 735(b)(2) of the Act, as to whether the domestic industry in the United States is materially injured, threatened with material injury, or the establishment of an industry in the United States is materially retarded by reason of imports of passenger tires from the PRC, no later than 45 days after our final determination. If the ITC determines that material injury, threat of material injury, or material retardation does not exist, this proceeding will be terminated and all cash deposits posted will be refunded or canceled. If the ITC determines that such injury or material retardation does exist, then the Department will issue an antidumping duty order directing CBP to assess, upon further instruction by the Department, antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. 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 administrative protective order (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 and notice are issued and published pursuant to sections 735(d) and 777(i)(1) of the Act. Dated: January 1, 2017. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. asabaliauskas on DSK3SPTVN1PROD with NOTICES Appendix I—Scope of the Investigation The merchandise covered by this investigation is stainless steel sheet and strip, whether in coils or straight lengths. Stainless steel is an alloy steel containing, by weight, 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements. The subject sheet and strip is a flatrolled product with a width that is greater than 9.5 mm and with a thickness of 0.3048 mm and greater but less than 4.75 mm, and that is annealed or otherwise heat treated, and pickled or otherwise descaled. The subject sheet and strip may also be further processed (e.g., cold-rolled, annealed, tempered, polished, aluminized, coated, painted, varnished, trimmed, cut, punched, or slit, etc.) provided that it maintains the VerDate Sep<11>2014 17:36 Feb 07, 2017 Jkt 241001 specific dimensions of sheet and strip set forth above following such processing. The products described include products regardless of shape, and include products of either rectangular or non-rectangular crosssection 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 nonrectangular shape, etc.), the measurement at its greatest width or thickness applies. 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. Subject merchandise includes stainless steel sheet and strip that has been further processed in a third country, including but not limited to cold-rolling, annealing, tempering, polishing, aluminizing, coating, 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 stainless steel sheet and strip. Excluded from the scope of this investigation are the following: (1) Sheet and strip that is not annealed or otherwise heat treated and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled stainless steel products of a thickness of 4.75 mm or more); and (3) flat wire (i.e., cold-rolled sections, with a mill edge, rectangular in shape, of a width of not more than 9.5 mm). The products under investigation are currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.90.0010, 7220.90.0015, 7220.90.0060, and PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 9719 7220.90.0080. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive. Appendix II—Outline of the Issues and Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Use of Adverse Facts Available VI. Critical Circumstances VII. Separate Rates VIII. Combination Rates IX. PRC-Wide Rate X. Adjustment Under Section 777A(F) of the Act XI. Adjustment to Cash Deposit Rate for Export Subsidies XII. Discussion of the Issues XIII. Recommendation List of Topics Discussed in the Issues and Decision Memorandum Issue 1: Whether the Department’s Investigation and Decision Not to Verify Taigang Were Lawful Issue 2: Whether the Department Should Apply a Double-Remedy Adjustment for Domestic Subsidies Countervailed in the Accompanying CVD Investigation Issue 3: Whether the Department has the Statutory Authority to Issue a CountryWide ‘‘PRC-Entity’’ AD Rate, and Whether the Department has Justification for Applying FA or AFA to Taigang Issue 4: Whether the Department’s Presumption of PRC Government Control is Outdated Issue 5: Whether Taigang’s Export Activities Are Controlled by the Chinese Government [FR Doc. 2017–02576 Filed 2–7–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–533–871] Finished Carbon Steel Flanges From India: 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 finished carbon steel flanges from India are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 1, 2015, through March 31, 2016. The estimated weighted-average dumping margins of sales at LTFV are shown in the ‘‘Preliminary Determination’’ section of this notice. Interested parties are invited AGENCY: E:\FR\FM\08FEN1.SGM 08FEN1

Agencies

[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9716-9719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02576]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-042]


Antidumping Duty Investigation of Stainless Steel Sheet and Strip 
From the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value and Final Affirmative Determination of Critical 
Circumstances

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

DATES: Effective February 8, 2017.

SUMMARY: The Department of Commerce (the Department) determines that 
imports of stainless steel sheet and strip (stainless sheet and strip) 
from the People's Republic of China (PRC) is being, or is likely to be, 
sold in the United States at less than fair value

[[Page 9717]]

(LTFV). The period of investigation (POI) is July 1, 2015, through 
December 31, 2015. The final weighted-average dumping margins for the 
investigation on stainless sheet and strip from the PRC are listed 
below in the ``Final Determination'' section of this notice. We 
continue to find that critical circumstances exist for the PRC-wide 
entity and the separate rate companies that were not selected for 
individual examination.

FOR FURTHER INFORMATION CONTACT: Alexander Cipolla, or Kathryn Wallace, 
AD/CVD Operations, Office VII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4956 or (202) 482-6251 respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 19, 2016, the Department published its affirmative 
preliminary determination that stainless sheet and strip from the PRC 
is being, or is likely to be, sold in the United States at less than 
fair value, as provided by section 733 of the Tariff Act of 1930, as 
amended (the Act).\1\ The following events occurred since the 
Preliminary Determination. On October 21, 2016, the Department issued a 
postponement of the Final Determination.\2\ We invited interested party 
comments on the Preliminary Determination in this investigation. On 
November 2, 2016, mandatory respondent, Shanxi Taigang Stainless Steel 
Co., Ltd (Taigang) submitted a case brief. On November 14, 2016, 
Petitioners filed a rebuttal case brief.\3\ On January 17, 2017, the 
Department held hearing with respect to this investigation. For a 
complete discussion of the issues raised in the case and rebuttal 
briefs, see the Issues and Decision Memorandum.\4\
---------------------------------------------------------------------------

    \1\ See Stainless Steel Sheet and Strip From the People's 
Republic of China: Preliminary Affirmative Determination of Sales at 
Less Than Fair Value and Preliminary Affirmative Determination of 
Critical Circumstances, 81 FR 64135 (September 19, 2016) 
(Preliminary Determination) and the accompanying Preliminary 
Determination Memorandum.
    \2\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Postponement of Final Determination of Sales at 
Less Than Fair Value Investigation, 81 FR 72776 (October 21, 2016).
    \3\ Petitioners are AK Steel Corporation, Allegheny Ludlum, LLC 
d/b/a ATI Flat Rolled Products, North American Stainless, and 
Outokumpu Stainless USA, LLC.
    \4\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, regarding ``Decision Memorandum for the 
Final Determination in the Antidumping Duty Investigation of 
Stainless Steel Sheet and Strip from the People's Republic of 
China,'' (February 1, 2017) (Issues and Decision Memorandum), which 
is hereby adopted by this notice.
---------------------------------------------------------------------------

Period of Investigation

    The POI is July 1, 2015, through December 31, 2015. This period 
corresponds to the two most recent fiscal quarters prior to the month 
of the filing of the petition.\5\
---------------------------------------------------------------------------

    \5\ See 19 CFR 351.204(b)(1).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is stainless sheet and 
strip. For a complete description of the scope of this investigation, 
see Appendix I.

Final Affirmative Determination of Critical Circumstances

    We continue to find that critical circumstances exist for the PRC-
wide entity and non-selected respondents eligible for a separate rate, 
in accordance with section 735(a)(3) of the Act and 19 CFR 351.206. For 
a full description of the methodology and results of our analysis, see 
the Preliminary Determination, unchanged in the Issues and Decision 
Memorandum.

Separate Rates

    In the Preliminary Determination, we found that evidence provided 
by Taiyuan Ridetaixing Precision Stainless Steel Incorporated Co., Ltd. 
(Ridetaixing), and Zhangjiagang Pohang Stainless Steel Co., Ltd. (ZPSS) 
supported finding an absence of both de jure and de facto government 
control, and, therefore, we preliminarily granted a separate rate to 
each of these companies.\6\ In addition, in the Preliminary 
Determination, we found Tiancheng Stainless Steel Products Co., Ltd. 
(Tiancheng), Taigang and Tianjin Taigang Daming Metal Product Co., Ltd. 
(Daming) to be ineligible for a separate rate.\7\ For the final 
determination, we continue to find that Ridetaixing and ZPSS are 
eligible for separate rates.
---------------------------------------------------------------------------

    \6\ See Preliminary Decision Memorandum at 10-13.
    \7\ Id. at 12.
---------------------------------------------------------------------------

    With respect to Taigang, we determined in the Preliminary 
Determination that it failed to demonstrate an absence of de facto 
government contro, and, thus, the Department did not grant Taigang a 
separate rate. For this final determination, we continue to find, based 
on record evidence, that Taigang failed to demonstrate an absence of de 
facto government control, and we are, therefore, not granting Taigang a 
separate rate. For further discussion of this issue, see the Issues and 
Decision Memorandum at Issue 5.
    We have looked to sections 735(c)(5)(A)-(B) of the Act for guidance 
in determining the rate applicable to separate rate respondents not 
selected for individual examination. Under section 735(c)(5)(A) of the 
Act, the rate for all other companies that have not been individually 
examined is normally 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 on the basis of 
facts available. In this investigation, both exporters selected for 
individual examination have been found to be part of the PRC-wide 
entity, which is receiving an antidumping duty rate based entirely on 
facts otherwise available with an adverse inference. Therefore, looking 
to section 735(c)(5)(B) of the Act, the Department is using ``any 
reasonable method'' to determine the rate for exporters that are not 
being individually examined and found to be entitled to a separate 
rate, as we did in the Preliminary Determination. As such, we continue 
to assign the simple average of the two petition rates (i.e., 63.86 
percent) to the separate rate applicants not individually examined.\8\
---------------------------------------------------------------------------

    \8\ See Preliminary Determination.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Issues and Decision Memorandum 
accompanying this notice, which is hereby adopted by this notice. A 
list of the issues which the parties raised and to which the Department 
responded in the memorandum appears in Appendix II of this notice. The 
Issues and 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 Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the memorandum are identical in content.

[[Page 9718]]

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to the separate rate and PRC-wide 
entity cash deposit rates since the Preliminary Determination. For a 
discussion of these changes, see the Issues and Decision Memorandum, 
dated concurrently with this notice.\9\
---------------------------------------------------------------------------

    \9\ See Issues and Decision Memorandum, dated concurrently with 
this memorandum.
---------------------------------------------------------------------------

PRC-Wide Rate

    In our Preliminary Determination, we found that the PRC-wide 
entity, which includes Taigang, Daming, and other PRC exporters and/or 
producers that did not respond to the Department's requests for 
information, failed to provide necessary information, withheld 
information requested by the Department, failed to provide information 
in a timely manner, and significantly impeded this proceeding by not 
submitting the requested information. As a result, we preliminarily 
determined to calculate the PRC-wide rate on the basis of adverse facts 
available (AFA), pursuant to sections 776(a)-(b) of the Act. As AFA, we 
determined to use the highest petition margin (76.64 percent) and 
corroborated that margin. For this final determination, we continue to 
rely on AFA in determining the rate for the PRC-wide entity and to 
select 76.64 percent as the dumping margin for the PRC-wide entity.

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.\10\ Policy Bulletin 05.1 describes 
this practice.\11\
---------------------------------------------------------------------------

    \10\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Initiation of Antidumping Duty Investigation, 81 
FR 12711 (March 10, 2016) (Initiation Notice).
    \11\ See Enforcement and Compliance Policy Bulletin No. 05.1 
``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 http://enforcement.trade.gov/policy/bull05-1.pdf.
---------------------------------------------------------------------------

Final Determination

    The Department determines that imports of stainless sheet and strip 
from the PRC is being, or is likely to be, sold in the United States at 
LTFV as provided in section 735 of the Act and determines that the 
estimated final weighted-average dumping margins are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                     Weighted-
                                                                                      average      Cash deposit
                   Exporter                                 Producer              dumpin  margin        (%)
                                                                                        (%)
----------------------------------------------------------------------------------------------------------------
Taiyuan Ridetaixing Precision Stainless Steel   Taiyuan Ridetaixing Precision              63.86           45.26
 Incorporated Co., Ltd.                          Stainless Steel Incorporated
                                                 Co., Ltd.
Zhangjiagang Pohang Stainless Steel Co., Ltd..  Zhangjiagang Pohang Stainless              63.86           45.26
                                                 Steel Co., Ltd.
PRC-Wide Entity...............................  PRC-Wide Entity.................           76.64           58.04
----------------------------------------------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties the calculations performed in this 
proceeding within five days of any public announcement of this notice 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As noted above, for this final determination, the Department found 
that critical circumstances exist with respect to imports of the 
subject merchandise from the PRC-wide entity and the non-selected 
separate rate respondents. Therefore, in accordance with section 
735(c)(4)(A) of the Act, we will instruct U.S. Customs and Border 
Protection (CBP) to continue to suspend liquidation of all imports of 
the merchandise subject to the investigation, that were entered or 
withdrawn from warehouse, for consumption on or after June 21, 2016, 90 
days prior to publication of the Preliminary Determination in the 
Federal Register, and require a cash deposit for such entries as noted 
below.
    Pursuant to 19 CFR 351.205(d) and section 735(c)(1)(B)(ii) of the 
Act, we will instruct CBP to require a cash deposit \12\ for all 
suspended entries at an ad valorem rate equal to the weighted-average 
amount by which normal value exceeds U.S. price, as follows: (1) The 
cash deposit rate for the exporter/producer combination listed in the 
table above will be the dumping margin identified for that combination 
in the table adjusted, where appropriate,\13\ for export subsidies and 
estimated domestic subsidy pass-through; \14\ (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 dumping margin established for the PRC-wide entity, which will 
be adjusted, where appropriate for export subsidies and estimated 
domestic subsidy pass-through; 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 and cash deposit 
instructions will remain in effect until further notice.
---------------------------------------------------------------------------

    \12\ 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).
    \13\ If the ITC makes an affirmative final determination, we 
will adjust the cash deposit rates by deducting applicable final 
export subsidy and domestic pass-through rates from the final 
dumping margins.
    \14\ See sections 772(c)(1)(C) and 777A(f) of the Act, 
respectively. Unlike in administrative reviews, the Department makes 
an adjustment for export subsidies in investigations not in the 
margin-calculation program, but to the cash-deposit rate. See Notice 
of Final Determination of Sales at Less Than Fair Value, and 
Negative Determination of Critical Circumstances: Certain Lined 
Paper Products from India, 71 FR 45012 (August 8, 2006), and 
accompanying Issues and Decision memorandum at Comment 1.
---------------------------------------------------------------------------

    The cash deposit rates were adjusted by the countervailing duty 
attributable to export subsidies. Pursuant to 777A(f) of the Act, we 
are also adjusting final cash deposit rates for estimated domestic 
subsidy pass-through, where appropriate.\15\
---------------------------------------------------------------------------

    \15\ Id. at Issue 2.
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at less than fair value. Because the final 
determination in this proceeding is

[[Page 9719]]

affirmative, the ITC will make its final determination, in accordance 
with section 735(b)(2) of the Act, as to whether the domestic industry 
in the United States is materially injured, threatened with material 
injury, or the establishment of an industry in the United States is 
materially retarded by reason of imports of passenger tires from the 
PRC, no later than 45 days after our final determination. If the ITC 
determines that material injury, threat of material injury, or material 
retardation does not exist, this proceeding will be terminated and all 
cash deposits posted will be refunded or canceled. If the ITC 
determines that such injury or material retardation does exist, then 
the Department will issue an antidumping duty order directing CBP to 
assess, upon further instruction by the Department, antidumping duties 
on all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

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 
administrative protective order (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 and notice are issued and 
published pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: January 1, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is stainless steel 
sheet and strip, whether in coils or straight lengths. Stainless 
steel is an alloy steel containing, by weight, 1.2 percent or less 
of carbon and 10.5 percent or more of chromium, with or without 
other elements. The subject sheet and strip is a flat-rolled product 
with a width that is greater than 9.5 mm and with a thickness of 
0.3048 mm and greater but less than 4.75 mm, and that is annealed or 
otherwise heat treated, and pickled or otherwise descaled. The 
subject sheet and strip may also be further processed (e.g., cold-
rolled, annealed, tempered, polished, aluminized, coated, painted, 
varnished, trimmed, cut, punched, or slit, etc.) provided that it 
maintains the specific dimensions of sheet and strip set forth above 
following such processing. The products described include products 
regardless of 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.
    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.
    Subject merchandise includes stainless steel sheet and strip 
that has been further processed in a third country, including but 
not limited to cold-rolling, annealing, tempering, polishing, 
aluminizing, coating, 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 stainless steel 
sheet and strip.
    Excluded from the scope of this investigation are the following: 
(1) Sheet and strip that is not annealed or otherwise heat treated 
and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled 
stainless steel products of a thickness of 4.75 mm or more); and (3) 
flat wire (i.e., cold-rolled sections, with a mill edge, rectangular 
in shape, of a width of not more than 9.5 mm).
    The products under investigation are currently classifiable 
under Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 
7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 
7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 
7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 
7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 
7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 
7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 
7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 
7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 
7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 
7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 
7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 
7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 
7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 
7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

Appendix II--Outline of the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Use of Adverse Facts Available
VI. Critical Circumstances
VII. Separate Rates
VIII. Combination Rates
IX. PRC-Wide Rate
X. Adjustment Under Section 777A(F) of the Act
XI. Adjustment to Cash Deposit Rate for Export Subsidies
XII. Discussion of the Issues
XIII. Recommendation

List of Topics Discussed in the Issues and Decision Memorandum

Issue 1: Whether the Department's Investigation and Decision Not to 
Verify Taigang Were Lawful
Issue 2: Whether the Department Should Apply a Double-Remedy 
Adjustment for Domestic Subsidies Countervailed in the Accompanying 
CVD Investigation
Issue 3: Whether the Department has the Statutory Authority to Issue 
a Country-Wide ``PRC-Entity'' AD Rate, and Whether the Department 
has Justification for Applying FA or AFA to Taigang
Issue 4: Whether the Department's Presumption of PRC Government 
Control is Outdated
Issue 5: Whether Taigang's Export Activities Are Controlled by the 
Chinese Government

[FR Doc. 2017-02576 Filed 2-7-17; 8:45 am]
 BILLING CODE 3510-DS-P