Certain Corrosion-Resistant Steel Products From the People's Republic of China: Affirmative Preliminary Determination of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 58170-58172 [2017-26606]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 82, Number 236 (Monday, December 11, 2017)]
[Notices]
[Pages 58170-58172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26606]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-026, C-570-027]


Certain Corrosion-Resistant Steel Products From the People's 
Republic of China: Affirmative Preliminary Determination of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing Duty 
Orders

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that imports of certain corrosion-resistant steel products 
(CORE), produced in the Socialist Republic of Vietnam (Vietnam) using 
carbon hot-rolled steel (HRS) or cold-rolled steel (CRS) flat products 
manufactured in the People's Republic of China (PRC), are circumventing 
the antidumping duty (AD) and countervailing duty (CVD) orders on CORE 
from the PRC.

DATE: Applicable December 11, 2017.

FOR FURTHER INFORMATION CONTACT: Nancy Decker or Mark Hoadley, 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) 482-0196 or (202) 482-3148, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Certain domestic interested parties, Steel Dynamics, Inc. (SDI), 
California Steel Industries (CSI), ArcelorMittal USA LLC (AMUSA), Nucor 
Corporation (Nucor), United States Steel Corporation, and AK Steel 
Corporation (collectively, the domestic parties), filed submissions \1\ 
alleging that imports of CORE from Vietnam made from HRS or CRS sourced 
from the PRC and exported to the United States as CORE of Vietnamese 
origin are circumventing the CORE Orders.\2\ In their submissions, 
domestic parties requested the Department initiate anti-circumvention 
inquiries pursuant to section 781(b) of the Tariff Act of 1930, as 
amended (the Act), and 19 CFR 351.225(h), to determine whether the 
importation of the PRC-origin HRS or CRS substrate input for finishing 
into CORE in Vietnam and subsequent sale of that CORE to the United 
States constitutes circumvention of the CORE Orders.
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    \1\ See Domestic Parties' Letter, ``Certain Cold-Rolled Steel 
Flat Products from China: Request for Circumvention Ruling,'' dated 
September 22, 2016 (Circumvention Ruling Request September 22, 
2017), and Petitioners' Letter, ``Certain Cold-Rolled Steel Flat 
Products from the People's Republic of China--Request for 
Circumvention Ruling Pursuant to Section 781(b) of the Tariff Act of 
1930,'' dated September 23, 2016 (Circumvention Ruling Request 
September 27, 2017).
    \2\ See Certain Corrosion-Resistant Steel Products from India, 
Italy, the People's Republic of China, the Republic of Korea and 
Taiwan: Amended Final Affirmative Antidumping Determination for 
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 
2016), and Certain Corrosion-Resistant Steel Products from India, 
Italy, Republic of Korea and the People's Republic of China: 
Countervailing Duty Order, 81 FR 48387 (July 25, 2016) (collectively 
CORE Orders).
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    On November 14, 2016, the Department published the notice of 
initiation of anti-circumvention inquiries on imports of CORE from 
Vietnam.\3\ On August 29, 2017, the Department postponed the final 
determination of these inquiries and the revised final deadlines are 
now February 15, 2018.\4\ For a complete description of the events that 
followed the initiation of these inquiries, see the Preliminary 
Decision Memorandum.\5\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix I to this notice. The 
Preliminary Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, 
and to all parties in the Central Records Unit, Room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \3\ See Certain Corrosion-Resistant Steel Products from the 
People's Republic of China: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81 
FR 79454 (November 14, 2016) (Initiation Notice).
    \4\ See Letter, ``Certain Corrosion-Resistant Steel Products 
(CORE) from the People's Republic of China (PRC): Extension of Anti-
Circumvention Final Determinations,'' August 29, 2017.
    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determinations in the Anti-Circumvention Inquiries of Certain 
Corrosion-Resistant Steel Products from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Orders

    The products covered by these orders 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. For a complete description of the 
scope of the orders, see the Preliminary Decision Memorandum.\6\
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    \6\ Id.
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Scope of the Anti-Circumvention Inquiries

    These anti-circumvention inquiries cover CORE produced in Vietnam 
from HRS or CRS substrate input manufactured in the PRC and 
subsequently exported from Vietnam to the United States (inquiry 
merchandise). These preliminary rulings apply to all shipments of 
inquiry merchandise on or after the date of the initiation of these 
inquiries. Importers and exporters of CORE produced in Vietnam using 
(1) HRS manufactured in Vietnam or third countries, (2) CRS 
manufactured in Vietnam using HRS produced in Vietnam or third 
countries, or (3) CRS manufactured in third countries, must certify 
that the HRS or CRS processed into CORE in Vietnam did not originate in 
the PRC, as provided for in the certifications attached to the Federal 
Register notice. Otherwise, their merchandise may be subject to 
antidumping and countervailing duties if the Department makes 
affirmative final determinations in these inquiries.

Methodology

    The Department is conducting these anti-circumvention inquiries in 
accordance with section 781(b) of the Act. Because Vietnam and the PRC 
\7\ are non-market economy countries, within the meaning of section 
771(18) of the Act, the Department has calculated the

[[Page 58171]]

value of certain processing and merchandise using factors of production 
and market economy values, as discussed in section 773(c) of the Act. 
For a full description of the methodology underlying the Department's 
preliminary determination, see the Preliminary Decision Memorandum.
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    \7\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017) citing 
Memorandum to Gary Taverman, ``China's Status as a Non-Market 
Economy,'' dated October 26, 2017. See also Certain Oil Country 
Tubular Goods from the Socialist Republic of Vietnam: Preliminary 
Results of Antidumping Duty Administrative Review, 81 FR 24797 
(October 14, 2016) (unchanged in Certain Oil Country Tubular Goods 
from the Socialist Republic of Vietnam: Final Results of Antidumping 
Duty Administrative Review; 2014-2015, 82 FR 18611 (April 20, 
2017)).
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Preliminary Finding

    As detailed in the Preliminary Decision Memorandum, we 
preliminarily determine that CORE produced in Vietnam from HRS or CRS 
sourced from the PRC is circumventing the CORE Orders. We therefore 
preliminarily determine that it is appropriate to include this 
merchandise within the CORE Orders and to instruct U.S. Customs and 
Border Protection (CBP) to suspend any entries of CORE from Vietnam 
produced from HRS or CRS from the PRC.

Suspension of Liquidation

    As stated above, the Department has made a preliminary affirmative 
finding of circumvention of the CORE Orders by exports to the United 
States of CORE produced in Vietnam from PRC-origin HRS or CRS. This 
circumvention finding applies to CORE produced by any Vietnamese 
company from PRC-origin HRS or CRS substrate input. In accordance with 
section 19 CFR 351.225(l)(2), the Department will direct CBP to suspend 
liquidation and to require a cash deposit of estimated duties on 
unliquidated entries of CORE produced in Vietnam from PRC-origin HRS or 
CRS that were entered, or withdrawn from warehouse, for consumption on 
or after November 4, 2016, the date of initiation of the anti-
circumvention inquiry.
    The suspension of liquidation instructions will remain in effect 
until further notice. The Department will instruct CBP to require AD 
cash deposits equal to the rate established for the PRC-wide entity 
(199.43 percent) and CVD cash deposits equal to the rate established 
for the PRC all-others rate (39.05 percent). In the underlying AD and 
CVD investigations, the Department relied on the rates calculated for 
the sole cooperative respondent in each investigation to determine the 
PRC-wide rate of 199.43 percent in the AD investigation and the all-
others rate of 39.05 percent in the CVD investigation. The rates are 
thus based on the cost and sales data and subsidy benefits of Chinese 
producers.
    CORE produced in Vietnam from HRS or CRS that is not of PRC-origin 
is not subject to these inquiries. Therefore, cash deposits are not 
required for such merchandise. If an importer imports CORE from Vietnam 
and it claims that the CORE was not produced from HRS or CRS substrate 
manufactured in the PRC, in order not to be subject to cash deposit 
requirements, the importer and exporter are required to meet the 
certification and documentation requirements described in Appendix II. 
Exporters of CORE produced from non-PRC origin HRS or CRS substrate 
must prepare and maintain an Exporter Certification and documentation 
supporting the Certification (see Appendix IV). In addition, importers 
of such CORE must prepare and maintain an Importer Certification (see 
Appendix III) as well as documentation supporting the Importer 
Certification. Besides the Importer Certification, the importer must 
also maintain a copy of an Exporter Certification (see Appendix IV) and 
relevant supporting documentation from its exporter of CORE who did not 
use the PRC-origin HRS or CRS substrate.

Verification

    As provided in 19 CFR 351.307, the Department intends to verify 
information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last final verification report is 
issued in these anti-circumvention inquiries, unless the Secretary 
alters the time limit. Rebuttal briefs, limited to issues raised in 
case briefs, may be submitted no later than five days after the 
deadline date for case briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) and 
(d)(2), parties who submit case briefs or rebuttal briefs in these 
anti-circumvention inquiries are encouraged to submit with each 
argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    The Department, consistent with section 781(e) of the Act, has 
notified the International Trade Commission (ITC) of these preliminary 
determinations to include the merchandise subject to these 
anticircumvention inquiries within the CORE Orders. Pursuant to section 
781(e) of the Act, the ITC may request consultations concerning the 
Department's proposed inclusion of the subject merchandise. If, after 
consultations, the ITC believes that a significant injury issue is 
presented by the proposed inclusion, it will have 60 days from the date 
of notification by the Department to provide written advice.

Notification to Interested Parties

    These determinations are issued and published in accordance with 
section 781(b) of the Act and 19 CFR 351.225(f).

    Dated: December 5, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Voluntary Respondent Treatment
IV. Scope of the Orders
V. Scope of the Anti-Circumvention Inquiries
VI. Period of Review
VII. Surrogate Countries and Methodology for Valuing Inputs from the 
PRC and Processing In Vietnam
VIII. Statutory Framework
IX. Statutory Analysis
X. Country-Wide Determination
XI. Certification for Not Using PRC-Origin HRS or CRS
XII. Recommendation

Appendix II

Certification Requirements

    If an importer imports CORE from the Socialist Republic of 
Vietnam (Vietnam) and claims that the CORE was not produced from 
hot-rolled or cold-rolled steel substrate (substrate) manufactured 
in the People's Republic of China (PRC), the importer is required to 
complete and maintain the

[[Page 58172]]

importer certification attached hereto as Appendix III. The importer 
and exporter are required to maintain the exporter certification 
attached hereto as Appendix IV. The importer certification must be 
completed, signed, and dated at the time of the entry of the CORE 
product. The exporter certification must be completed, signed, and 
dated at the time of shipment of the relevant entries. For shipments 
and/or entries on or after November 4, 2016, but before the 
publication of this notice in the Federal Register, for which 
certifications are required, importers and exporters should complete 
the required certification within 30 days of the publication of this 
notice in the Federal Register. The importer and Vietnamese exporter 
are also required to maintain sufficient documentation supporting 
their certifications. The importer will not be required to submit 
the certifications or supporting documentation to CBP as part of the 
entry process. However, the importer and the exporter will be 
required to present the certifications and supporting documentation, 
to the Department and/or U.S. Customs and Border Protection (CBP), 
as applicable, upon request by the respective agency. Additionally, 
the claims made in the certifications and any supporting 
documentation are subject to verification by the Department and/or 
CBP. The importer and exporter are required to maintain the 
certifications and supporting documentation for the later of (1) a 
period of five years from the date of entry or (2) a period of three 
years after the conclusion of any litigation in United States courts 
regarding such entries. If it is determined that the certification 
and/or documentation requirements in a certification have not been 
met, the Department intends to instruct CBP to suspend, under the 
PRC CORE orders (A-570-026, C-570-027), all unliquidated entries for 
which these requirements were not met and require the importer to 
post applicable antidumping duty (AD) and countervailing duty (CVD) 
cash deposits equal to the rates as determined by the Department of 
Commerce. Entries suspended under A-570-026 and C-570-027 will be 
liquidated pursuant to applicable administrative reviews of the PRC 
orders or through the automatic liquidation process.

Appendix III

Importer Certification

    I hereby certify that:
     My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}  
and I am an official of {INSERT NAME OF IMPORTING COMPANY{time} ;
     I have direct personal knowledge of the facts regarding 
the importation of the corrosion-resistant steel products produced 
in Vietnam that entered under entry number(s) {INSERT ENTRY 
NUMBER(S){time}  and are covered by this certification;
     I have personal knowledge of the facts regarding the 
production of the imported products covered by this certification;
     These corrosion-resistant steel products produced in 
Vietnam do not contain hot-rolled or cold-rolled steel substrate 
produced in the People's Republic of China (PRC);
     I understand that {INSERT NAME OF IMPORTING 
COMPANY{time}  is required to maintain a copy ofthis certification 
and sufficient documentation supporting this certification for the 
later of (1) a period of five years from the date of entry or (2) a 
period of three years after the conclusion of any litigation in the 
United States courts regarding such entries;
     I understand that {INSERT NAME OF IMPORTING 
COMPANY{time} is required to provide this certification and 
supporting records, upon request, to U.S. Customs and Border 
Protection (CBP) and/or the Department of Commerce (the Department);
     I understand that {INSERT NAME OF IMPORTING 
COMPANY{time}  is required to maintain a copy of the exporter's 
certification for the later of (1) a period of five years from the 
date of entry or (2) a period of three years after the conclusion of 
any litigation in United States courts regarding such entries;
     I understand that {INSERT NAME OF IMPORTING 
COMPANY{time}  is required to maintain and provide a copy of the 
exporter's certification and supporting records, upon request, to 
CBP and/or the Department;
     I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or the Department;
     I understand that failure to maintain the required 
certification and/or failure to substantiate the claims made herein 
will result in:
    [cir] suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met and
    [cir] the requirement that the importer post applicable 
antidumping duty (AD) and countervailing duty (CVD) cash deposits 
equal to the rates as determined by the Department;
     I understand that agents of the importer, such as 
brokers, are not permitted to make this certification;
     This certification was completed at the time of entry;
     I am aware that U.S. law (including, but not limited 
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who 
knowingly and willfully make material false statements to the U.S. 
government.

Signature--------------------------------------------------------------

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NAME OF COMPANY OFFICIAL

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TITLE

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DATE

Appendix IV

Exporter Certification

    I hereby certify that:
     My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}  
and I am an official of {INSERT NAME OF EXPORTING COMPANY{time} ;
     I have direct personal knowledge of the facts regarding 
the production and exportation of the corrosion-resistant steel 
products identified below;
     These corrosion-resistant steel products produced in 
Vietnam do not contain hot-rolled or cold-rolled steel substrate 
produced in the People's Republic of China (PRC);
     I understand that {INSERT NAME OF EXPORTING 
COMPANY{time}  is required to maintain a copy of the this 
certification and sufficient documentation supporting this 
certification for the later of (1) a period of five years from the 
date of entry or (2) a period of three years after the conclusion of 
any litigation in the United States courts regarding such entries;
     I understand that {INSERT NAME OF EXPORTING 
COMPANY{time}  must provide this Exporter Certification to the U.S. 
importer at the time of shipment;
     I understand that {INSERT NAME OF EXPORTING 
COMPANY{time}  is required to provide a copy of this certification 
and supporting records, upon request, to U.S. Customs and Border 
Protection (CBP) and/or the Department of Commerce (the Department);
     I understand that the claims made herein, and the 
substantiating documentation are subject to verification by CBP and/
or the Department;
     I understand that failure to maintain the required 
certification and/or failure to substantiate the claims made herein 
will result in:
    [cir] suspension of all unliquidated entries (and entries for 
which liquidation has not become final) for which these requirements 
were not met and
    [cir] the requirement that the importer post applicable 
antidumping duty (AD) and countervailing duty (CVD) cash deposits 
equal to the rates as determined by the Department;
     This certification was completed at or prior to the 
time of shipment.
     I am aware that U.S. law (including, but not limited 
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who 
knowingly and willfully make material false statements to the U.S. 
government;

Signature--------------------------------------------------------------

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NAME OF COMPANY OFFICIAL

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TITLE

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DATE


[FR Doc. 2017-26606 Filed 12-8-17; 8:45 am]
 BILLING CODE 3510-DS-P