Certain Cold-Rolled Steel Flat Products From the Republic of Korea: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 37790-37795 [2018-16566]
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relied on published sources,
Commerce’s prior conclusions in CORE
China Circumvention Final, and
information presented in the ‘‘minor or
insignificant process’’ portion of their
anti-circumvention allegations to
indicate that the value of the substrate
(HRS and CRS manufactured in Korea
and Taiwan) is a significant portion of
the total value of the CORE exported
from Vietnam to the United States.62 We
find that this information adequately
meets the requirements of this factor, as
discussed above, for the purposes of
initiating these anti-circumvention
inquiries.
Finally, with respect to the additional
factors listed under section 781(b)(3) of
the Act, we find that the domestic
producers presented evidence
indicating that shipments of CORE from
Vietnam to the United States increased
since the imposition of the Orders 63 and
that shipments of HRS from Korea and
Taiwan to Vietnam also increased since
the Orders took effect.64 Furthermore,
we find that the domestic producers
have presented evidence that the largest
Korean manufacturer of CRS (POSCO) is
affiliated with a company in Vietnam
that completes the merchandise.65 We
also find that the domestic producers
provided sufficient evidence to
demonstrate that a Taiwanese steel
manufacturer, CSC, owns 56 percent of
Vietnamese CORE producer, CSVC.66
Accordingly, we are initiating formal
anti-circumvention inquiries concerning
the AD and CVD orders on CORE from
Korea and the AD order on CORE from
Taiwan, pursuant to section 781(b) of
the Act.
As these inquiries are initiated on a
country-wide basis (i.e., not exclusive to
the producers mentioned immediately
above), Commerce intends to issue
questionnaires to solicit information
from the Vietnamese producers and
exporters concerning their shipments of
CORE to the United States and the
origin of any imported HRS and CRS
being processed into CORE. A
company’s failure to respond
completely to Commerce’s requests for
information may result in the
application of partial or total facts
available, pursuant to section 776(a) of
62 See Anti-Circumvention Ruling Request—
Taiwan at Exhibits 1, 4, and 9; Anti-Circumvention
Ruling Request—Korea at Exhibits 14, 17.
63 See Anti-Circumvention Ruling Request—
Taiwan at 9–10, Exhibit 4; Anti-Circumvention
Ruling Request—Korea at 24 and Exhibit 2.
64 See Anti-Circumvention Ruling Request—
Taiwan. at 10–11, Exhibit 9; Anti-Circumvention
Ruling Request—Korea at 24, Exhibit 2.
65 See Anti-Circumvention Ruling Request—
Korea at 24–25, Exhibit 19.
66 See Anti-Circumvention Ruling Request—
Taiwan at 11, Exhibit 10.
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the Act, which may include adverse
inferences, pursuant to section 776(b) of
the Act.
While we believe sufficient factual
information has been submitted by the
domestic producers supporting their
request for inquiries, we do not find that
the record supports the simultaneous
issuance of a preliminary ruling. Such
inquiries are by their nature typically
complicated and can require
information regarding production in
both the country subject to the order
and the third country completing the
product. As noted above, Commerce
intends to request additional
information regarding the statutory
criteria to determine whether shipments
of CORE from Vietnam are
circumventing the AD and CVD orders
on CORE from Korea and the AD order
on CORE from Taiwan. Thus, with
further development of the record
required before a preliminary ruling can
be issued, Commerce does not find it
appropriate to issue a preliminary ruling
at this time.
Notification to Interested Parties
In accordance with 19 CFR
351.225(e), Commerce finds that the
issue of whether a product is included
within the scope of an order cannot be
determined based solely upon the
application and the descriptions of the
merchandise. Accordingly, Commerce
will notify by mail all parties on
Commerce’s scope service list of the
initiation of these anti-circumvention
inquiries. In addition, in accordance
with 19 CFR 351.225(f)(1)(i) and (ii), in
this notice of initiation issued under 19
CFR 351.225(e), we have included a
description of the product that is the
subject of these anti-circumvention
inquiries (i.e., CORE that contains the
characteristics as provided in the scope
of the Orders) and an explanation of the
reasons for Commerce’s decision to
initiate an anti-circumvention inquiry,
as provided above.
In accordance with 19 CFR
351.225(l)(2), if Commerce issues a
preliminary affirmative determination,
we will then instruct U.S. Customs and
Border Protection to suspend
liquidation and require a cash deposit of
estimated antidumping and
countervailing duties, at the applicable
rate, for each unliquidated entry of the
merchandise at issue, entered or
withdrawn from warehouse for
consumption on or after the date of
initiation of the inquiry. Commerce will
establish a schedule for questionnaires
and comments on the issues. In
accordance with section 781(f) of the
Act and 19 CFR 351.225(f)(5),
Commerce intends to issue its final
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determination within 300 days of the
date of publication of this initiation.
This notice is published in
accordance with 19 CFR 351.225(f).
Dated: July 27, 2018.
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.
[FR Doc. 2018–16565 Filed 8–1–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–881, C–580–882]
Certain Cold-Rolled Steel Flat Products
From the Republic of Korea: Initiation
of Anti-Circumvention Inquiries on the
Antidumping Duty and Countervailing
Duty Orders
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from
ArcelorMittal USA LLC, Nucor
Corporation, United States Steel
Corporation, Steel Dynamics, Inc. and
California Steel Industries (collectively,
the domestic producers), the
Department of Commerce (Commerce) is
initiating a country-wide anticircumvention inquiries to determine
whether imports of certain cold-rolled
steel flat products (CRS), which are
completed in the Socialist Republic of
Vietnam (Vietnam) from hot-rolled steel
(HRS) produced in the Republic of
Korea (Korea), are circumventing the
antidumping duty (AD) and
countervailing duty (CVD) orders on
CRS from Korea.
DATES: Applicable August 2, 2018.
FOR FURTHER INFORMATION CONTACT:
Tyler Weinhold or Fred Baker, AD/CVD
Operations, Office VI, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1121 or (202) 482–2924,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
On July 28, 2015, AK Steel
Corporation, ArcelorMittal USA LLC,
Nucor Corporation, Steel Dynamics,
Inc., and the United States Steel
Corporation (the domestic producers)
filed petitions seeking the imposition of
antidumping and countervailing duties
on imports of CRS from Brazil, the
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People’s Republic of China, India,
Japan, Korea, the Netherlands, Russia,
and the United Kingdom.1 In response
to these petitions, Commerce initiated
AD and CVD investigations on August
24, 2015.2 Following Commerce’s final
affirmative determinations of dumping
and countervailable subsidies,3 and the
U.S. International Trade Commission
(ITC)’s finding of material injury,4
Commerce issued AD and CVD orders
on imports of CRS from Korea
(collectively, Orders).5
On June 12, 2018, pursuant to section
781(b) of the Tariff Act of 1930, as
amended (the Act) and 19 CFR
351.225(h), the domestic producers
submitted a request for Commerce to
initiate anti-circumvention inquiries to
determine whether entities in Vietnam
are circumventing the Orders by
exporting, to the United States, CRS
which is completed or assembled in
Vietnam using HRS sourced from
Korea.6 Further, pursuant to 19 CFR
351.225(f), the domestic producers
request that Commerce initiate anticircumvention inquiries and issue in
conjunction with initiation of the
inquiries a preliminary determination of
circumvention of the Orders to suspend
1 See Petitioners’ Letter, ‘‘Certain Cold-Rolled
Steel Flat Products from Brazil, China, India, Japan,
Korea, Netherlands, Russia, and the United
Kingdom,’’ dated July 28, 2015.
2 See Certain Cold-Rolled Steel Flat Products from
Brazil, India, the People’s Republic of China, the
Republic of Korea, and the Russian Federation:
Initiation of Countervailing Duty Investigations, 80
FR 51206 (August 24, 2015); and Certain ColdRolled Steel Flat Products from Brazil, the People’s
Republic of China, India, Japan, the Republic of
Korea, the Netherlands, the Russian Federation,
and the United Kingdom: Initiation of Less-ThanFair-Value Investigations, 80 FR 51198 (August 24,
2015).
3 See Certain Cold-Rolled Steel Flat Products from
the Republic of Korea: Final Determination of Sales
at Less Than Fair Value, 81 FR 49953 (July 29,
2016); and Countervailing Duty Investigation of
Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Final Affirmative Determination,
81 FR 49943 (July 29, 2016).
4 See Cold-Rolled Steel Flat Products from Brazil,
India, Korea, Russia, and the United Kingdom;
Determinations, 81 FR 63806 (September 16, 2016).
5 See Certain Cold-Rolled Steel Flat Products from
Brazil, India, the Republic of Korea, and the United
Kingdom: Amended Final Affirmative Antidumping
Determinations for Brazil and the United Kingdom
and Antidumping Duty Orders, 81 FR 64432
(September 20, 2016) (AD Order); see also Certain
Cold-Rolled Steel Flat Products from Brazil, India,
and the Republic of Korea: Amended Final
Affirmative Countervailing Duty Determination and
Countervailing Duty Order (the Republic of Korea)
and Countervailing Duty Orders (Brazil and India),
81 FR 64436 (September 20, 2016) (CVD Order)
(collectively Orders).
6 See the Domestic Producers’ Letter, ‘‘Certain
Cold-Rolled Steel Flat Products from the Republic
of Korea: Request for Circumvention Ruling
Pursuant to Section 781(b) of the Tariff Act of
1930,’’ dated June 12, 2018 (Anti-Circumvention
Ruling Request).
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liquidation of imports of CRS from
Vietnam.7
Scope of the Orders
The products covered by the orders
are certain cold-rolled (cold-reduced),
flat-rolled steel products, whether or not
annealed, painted, varnished, or coated
with plastics or other non-metallic
substances. The products covered do
not include those that are clad, plated,
or coated with metal. The products
covered include coils that have a width
or other lateral measurement (‘‘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 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 nonrectangular 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 the orders 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
7 Id.,
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• 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, high strength
low alloy (HSLA) steels, motor
lamination steels, Advanced High
Strength Steels (AHSS), and Ultra High
Strength Steels (UHSS). 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.
Motor lamination steels contain microalloying levels of elements such as
silicon and aluminum. AHSS and UHSS
are considered high tensile strength and
high elongation steels, although AHSS
and UHSS are covered whether or not
they are high tensile strength or high
elongation steels.
Subject merchandise includes coldrolled 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 orders if performed in the country
of manufacture of the cold-rolled 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 the orders
unless specifically excluded. The
following products are outside of and/
or specifically excluded from the scope
of the orders:
• Ball bearing steels; 8
8 Ball bearing steels are defined as steels which
contain, in addition to iron, each of the following
elements by weight in the amount specified: (i) Not
less than 0.95 nor more than 1.13 percent of carbon;
(ii) not less than 0.22 nor more than 0.48 percent
of manganese; (iii) none, or not more than 0.03
percent of sulfur; (iv) none, or not more than 0.03
percent of phosphorus; (v) not less than 0.18 nor
more than 0.37 percent of silicon; (vi) not less than
1.25 nor more than 1.65 percent of chromium; (vii)
none, or not more than 0.28 percent of nickel; (viii)
none, or not more than 0.38 percent of copper; and
at 25.
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• Tool steels; 9
• Silico-manganese steel; 10
• Grain-oriented electrical steels
(GOES) as defined in the final
determination of the U.S. Department of
Commerce in Grain-Oriented Electrical
Steel From Germany, Japan, and
Poland.11
• Non-Oriented Electrical Steels
(NOES), as defined in the antidumping
orders issued by the U.S. Department of
Commerce in Non-Oriented Electrical
Steel From the People’s Republic of
China, Germany, Japan, the Republic of
Korea, Sweden, and Taiwan.12
The products subject to the orders are
currently classified in the Harmonized
Tariff Schedule of the United States
(HTSUS) under item numbers:
7209.15.0000, 7209.16.0030,
7209.16.0060, 7209.16.0070,
7209.16.0091, 7209.17.0030,
(ix) none, or not more than 0.09 percent of
molybdenum.
9 Tool steels are defined as steels which contain
the following combinations of elements in the
quantity by weight respectively indicated: (i) More
than 1.2 percent carbon and more than 10.5 percent
chromium; or (ii) not less than 0.3 percent carbon
and 1.25 percent or more but less than 10.5 percent
chromium; or (iii) not less than 0.85 percent carbon
and 1 percent to 1.8 percent, inclusive, manganese;
or (iv) 0.9 percent to 1.2 percent, inclusive,
chromium and 0.9 percent to 1.4 percent, inclusive,
molybdenum; or (v) not less than 0.5 percent carbon
and not less than 3.5 percent molybdenum; or (vi)
not less than 0.5 percent carbon and not less than
5.5 percent tungsten.
10 Silico-manganese steel is defined as steels
containing by weight: (i) Not more than 0.7 percent
of carbon; (ii) 0.5 percent or more but not more than
1.9 percent of manganese, and (iii) 0.6 percent or
more but not more than 2.3 percent of silicon.
11 Grain-Oriented Electrical Steel from Germany,
Japan, and Poland: Final Determinations of Sales at
Less Than Fair Value and Certain Final Affirmative
Determination of Critical Circumstances, 79 FR
42501, 42503 (July 22, 2014). This determination
defines grain-oriented electrical steel as ‘‘a flatrolled alloy steel product containing by weight at
least 0.6 percent but not more than 6 percent of
silicon, not more than 0.08 percent of carbon, not
more than 1.0 percent of aluminum, and no other
element in an amount that would give the steel the
characteristics of another alloy steel, in coils or in
straight lengths.’’
12 Non-Oriented Electrical Steel from the People’s
Republic of China, Germany, Japan, the Republic of
Korea, Sweden, and Taiwan: Antidumping Duty
Orders, 79 FR 71741, 71741–42 (December 3, 2014).
The orders define NOES as ‘‘cold-rolled, flat-rolled,
alloy steel products, whether or not in coils,
regardless of width, having an actual thickness of
0.20 mm or more, in which the core loss is
substantially equal in any direction of
magnetization in the plane of the material. The term
‘substantially equal’ means that the cross grain
direction of core loss is no more than 1.5 times the
straight grain direction (i.e., the rolling direction) of
core loss. NOES has a magnetic permeability that
does not exceed 1.65 Tesla when tested at a field
of 800 A/m (equivalent to 10 Oersteds) along (i.e.,
parallel to) the rolling direction of the sheet (i.e.,
B800 value). NOES contains by weight more than
1.00 percent of silicon but less than 3.5 percent of
silicon, not more than 0.08 percent of carbon, and
not more than 1.5 percent of aluminum. NOES has
a surface oxide coating, to which an insulation
coating may be applied.’’
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7209.17.0060, 7209.17.0070,
7209.17.0091, 7209.18.1530,
7209.18.1560, 7209.18.2510,
7209.18.2520, 7209.18.2580,
7209.18.6020, 7209.18.6090,
7209.25.0000, 7209.26.0000,
7209.27.0000, 7209.28.0000,
7209.90.0000, 7210.70.3000,
7211.23.1500, 7211.23.2000,
7211.23.3000, 7211.23.4500,
7211.23.6030, 7211.23.6060,
7211.23.6090, 7211.29.2030,
7211.29.2090, 7211.29.4500,
7211.29.6030, 7211.29.6080,
7211.90.0000, 7212.40.1000,
7212.40.5000, 7225.50.6000,
7225.50.8080, 7225.99.0090,
7226.92.5000, 7226.92.7050, and
7226.92.8050.
The products subject to the orders
may also enter under the following
HTSUS numbers: 7210.90.9000,
7212.50.0000, 7215.10.0010,
7215.10.0080, 7215.50.0016,
7215.50.0018, 7215.50.0020,
7215.50.0061, 7215.50.0063,
7215.50.0065, 7215.50.0090,
7215.90.5000, 7217.10.1000,
7217.10.2000, 7217.10.3000,
7217.10.7000, 7217.90.1000,
7217.90.5030, 7217.90.5060,
7217.90.5090, 7225.19.0000,
7226.19.1000, 7226.19.9000,
7226.99.0180, 7228.50.5015,
7228.50.5040, 7228.50.5070,
7228.60.8000, and 7229.90.1000.
The HTSUS subheadings above are
provided for convenience and U.S.
Customs purposes only. The written
description of the scope of the orders is
dispositive.
Merchandise Subject to the AntiCircumvention Inquiries
These anti-circumvention inquiries
cover imports of CRS exported from
Vietnam manufactured from HRS
produced in Korea.
Initiation of Anti-Circumvention
Inquiries
Section 781(b)(1) of the Act provides
that Commerce may find circumvention
of an AD or CVD order when
merchandise of the same class or kind
subject to the order is completed or
assembled in a foreign country other
than the country to which the order
applies. In conducting an anticircumvention inquiry, under section
781(b)(1) of the Act, Commerce relies on
the following criteria: (A) Merchandise
imported into the United States is of the
same class or kind as any merchandise
produced in a foreign country that is the
subject of an antidumping or
countervailing duty order or finding; (B)
before importation into the United
States, such imported merchandise is
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completed or assembled in another
foreign country from merchandise
which is subject to the order or
merchandise which is produced in the
foreign country that is subject to the
order; (C) the process of assembly or
completion in the foreign country
referred to in section (B) is minor or
insignificant; (D) the value of the
merchandise produced in the foreign
country to which the AD or CVD order
applies is a significant portion of the
total value of the merchandise exported
to the United States; and (E) the
administering authority determines that
action is appropriate to prevent evasion
of such order or finding. As discussed
below, the domestic producers provided
evidence with respect to these criteria.
A. Merchandise of the Same Class or
Kind
The domestic producers claim that
CRS exported to the United States is the
same class or kind as that covered by
the Orders in these inquiries.13 The
domestic producers provided evidence
to show that the merchandise from
Vietnam enters the United States under
the same tariff classification as subject
merchandise.14
B. Completion of Merchandise in a
Foreign Country
The domestic producers note that
section 781(b)(l)(B)(ii) of the Act
requires that Commerce ‘‘must
determine whether, prior to importation
into the United States, the merchandise
in the third country is completed from
merchandise produced in the country
subject to the antidumping or
countervailing duty order.’’ 15 The
domestic producers presented evidence
showing substantial imports of Korean
HRS into Vietnam following
Commerce’s August 2015 initiation of
AD and CVD investigations concerning
CRS from Korea.16 Additionally, the
domestic producers provide evidence
that, from 2015 through 2017, little to
no capacity existed in Vietnam to
produce HRS, and that HRS production
in Vietnam did not begin until 2017.17
Nevertheless, the domestic producers
maintain that despite Vietnamese
imports of HRS being significant even
before the initiation of AD and CVD
investigations on CRS from Korea in
mid-2015, imports increased by 26
percent between 2014 and 2016, before
13 See Anti-Circumvention Ruling Request at 7.
See also sections 781(b)(1)(A)(i) and (iii) of the Act.
14 See Anti-Circumvention Ruling Request at
Exhibit 1.
15 Id. at 7. See also section 781(b)(1)(B)(ii) of the
Act.
16 Id. at 7–8 and Exhibit 3
17 Id. at 8, Exhibit 4, and Exhibit 5.
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dropping only slightly in 2017.18 The
domestic producers also provide
information reflecting the fact that
imports into the United States of CRS
from Korea significantly decreased after
the imposition of the Orders, and that
imports into the United States of CRS
from Vietnam, as well as imports into
Vietnam of Korean HRS, also increased
significantly.19
C. Minor or Insignificant Process
The domestic producers maintain that
the process for completing CRS from
HRS is minor or insignificant. Under
section 781(b)(2) of the Act, Commerce
considers five factors to determine
whether the process of assembly or
completion in the foreign country in
which the merchandise is completed or
assembled is minor or insignificant: (A)
The level of investment in the foreign
country in which the merchandise is
completed or assembled; (B) the level of
research and development in the foreign
country in which the merchandise is
completed or assemble; (C) the nature of
the production process in the foreign
country in which the merchandise is
completed or assembled; (D) the extent
of production facilities in the foreign
country in which the merchandise is
completed or assembled, and (E)
whether the value of the processing
performed in the foreign country in
which the merchandise is completed or
assembled represents a small proportion
of the value of the merchandise
imported into the United States.
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(1) Level of Investment
The domestic producers contend that
the level of investment necessary to
construct a factory that can produce
CRS from HRS in Vietnam is
insignificant. In support of its
contention, the domestic producers
compare the investment necessary to
install a cold-rolling facility with the
investment necessary to produce HRS
using a fully-integrated production
process.20 The domestic producers cite
Commerce’s findings in the earlier anticircumvention ruling regarding
Vietnamese CRS using Chinese HRS
inputs (i.e., substrate).21 There,
Commerce pointed to record evidence
showing the cost to build an integrated
steel mill in China to produce HRS was
in the range of 250 million to 10 billion
U.S. dollars (USD) and that the cost to
build a cold-rolling mill in Vietnam to
produce CRS from HRS substrate was as
18 Id.
at 8 and Exhibit 3.
at 5–6, 8–9, and Exhibit 1.
20 Id. at 10–11.
21 Id.
19 Id.
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low as 28 million USD.22 The domestic
producers also provide evidence that
the cost to build one integrated steel
mill in Korea was 5 billion USD, and
that the cost of building an integrated
steel mill in Vietnam to one Vietnamese
firm, Formosa Ha Tinh, was 10.6 billion
USD.23 Finally, the domestic producers
provided evidence that the cost of
building a coated steel sheet factory,
including a cold-rolling mill, was only
70 million USD.24 The domestic
producers, therefore, conclude that in
comparison to the investment necessary
for an integrated steel mill in Korea, the
cost of a cold-rolling mill in Vietnam is
insignificant.25
(2) Level of Research and Development
The domestic producers assert that
the level of research and development
(R&D) in Vietnam is either minimal or
non-existent.26 The domestic producers
cite to Commerce’s findings in CRS
China Circumvention Final, where
Commerce found that no R&D
investments had been made by
mandatory respondents POSCO
Vietnam and VNSteel Phu My Flat Steel
Limited.27 The domestic producers
contend that rather than developing its
own technology, CRS producers in
Vietnam are using technology
developed abroad.28 As an example of
Vietnamese producers using technology
developed abroad, the domestic
producers provided evidence that Dong
A, a Vietnamese steel company, uses
European and Japanese equipment in its
coated sheet facility (which includes a
pickling and cold-rolling mill).29 In
contrast, the domestic producers point
to POSCO’s R&D activities in Korea,
which included employing an R&D
laboratory staff of 934 personnel as of
December 31, 2017, as well as total R&D
22 Id. (citing Certain Cold-Rolled Steel Flat
Products from the People’s Republic of China:
Affirmative Preliminary Determination of Anti
Circumvention Inquiries on the Antidumping Duty
and Countervailing Duty Orders, 82 FR 58178
(December 11, 2017) (CRS China Circumvention
Preliminary) and accompanying Preliminary
Decision Memorandum at 16–17; and Certain ColdRolled Steel Flat Products from the People’s
Republic of China: Affirmative Final Determination
of Circumvention of the Antidumping Duty and
Countervailing Duty Orders, 83 FR 23891 (May 23,
2018) (CRS China Circumvention Final), and the
accompanying Issues and Decision Memorandum at
32).
23 See Anti-Circumvention Ruling Request at 11–
12.
24 Id. at 12.
25 Id.
26 Id. at 12–14.
27 Id. at 12–13 (citing CRS China Circumvention
Final and the accompanying Issues and Decision
Memorandum at 37–38).
28 Id. at 13.
29 Id.
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Frm 00011
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Sfmt 4703
37793
expenses of hundreds of billions of
Korean Won from 2015 through 2017.30
(3) Nature of Production Process
According to the domestic producers,
the production process undertaken by
Vietnamese producers of CRS is less
complex than steelmaking, and it is
minimal in nature.31 Citing the ITC
report in the underlying investigation of
CRS from Korea, the domestic producers
describe the process to produce HRS as
consisting of three distinct stages
(melting and refining steel, casting
molten steel into semi-finished forms,
and hot-rolling the semi-finished forms
into HRS).32 In contrast, the domestic
producers provide information
indicating that the production of CRS
from HRS involves less processing
(cleaning and pickling, rolling,
annealing, and tempering).33 Further,
the domestic producers cite Commerce’s
findings in CRS China Circumvention
Final, where Commerce found the
production process to produce CRS
from HRS inputs in Vietnam to be
comparatively minor.34
(4) Extent of Production Facilities in
Vietnam
The domestic producers provide
information indicating that production
facilities in Vietnam are more limited
compared to facilities in Korea.35 They
maintain that Vietnam had little to no
HRS capacity during the relevant
period. The domestic producers also
point to CRS China Circumvention
Final, where Commerce found that ‘‘the
vast majority of production activities
necessary to produce CRS occur at the
molten steel, semi-finished steel, and
hot-rolling stages.’’ 36 The domestic
producers conclude that the extent of
production facilities in Vietnam
required to convert Korean HRS to CRS
are no greater than those facilities
30 Id.
at 13–14.
at 14–18.
32 Id. at 15–18 (citing Certain Hot-Rolled Steel
Flat Products from Australia, Brazil, Japan, Korea,
the Netherlands, Turkey, and The United Kingdom,
Inv. Nos. 701–TA–545–547 and 73l–TA–1291–
1297, USITC Publication 4570 (Oct. 2015)
(Preliminary) at I–18 to I–22).
33 See id. at 17 (citing Cold-Rolled Steel Flat
Products from Brazil, China, India, Japan, Korea,
Netherlands, Russia and the United Kingdom, Inv.
Nos. 701–TA–540–544 and 731–TA–1283–1290,
USITC Publication 4564 (Sept. 2015) (Preliminary)
at 1–21).
34 See id. at 14–15 (citing CRS China
Circumvention Final and the accompanying Issues
and Decision Memorandum at 39).
35 Id. at 18–19 (citing CRS China Circumvention
Final and the accompanying Issues and Decision
Memorandum at 39).
36 Id. at 18–19 (citing CRS China Circumvention
Final and the accompanying Issues and Decision
Memorandum at 39).
31 Id.
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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices
required to convert Chinese HRS to
CRS.37
(5) Value of Processing in Vietnam
The domestic producers assert that
producing HRS in Korea accounts for a
large percentage of the total value of
CRS that is produced in Vietnam using
HRS from Korea. As support, the
domestic producers again point to CRS
China Circumvention Final, where
Commerce found that CRS producers
did not incur significant additional
costs in the production of CRS, beyond
the cost of HRS substrate inputs, that
the value of further processing in
Vietnam comprised only a small
proportion of the total export value, and
that the value of HRS produced in China
constituted a significant portion of the
value of the CRS exported to the United
States.38 Additionally, the domestic
producers cite the recent ITC
investigation of CRS from China and
Japan, stating that the information
contained therein demonstrates that the
cost of Korean HRS inputs account for
‘‘roughly 81 to 89 percent’’ of the value
of CRS.39 Finally, citing a 2017
Financial Times article, the domestic
producers further argue that the cost of
producing HRS in Korea is higher than
the cost of producing HRS in China.40
daltland on DSKBBV9HB2PROD with NOTICES
D. Additional Factors To Consider in
Determining Whether Action Is
Necessary
Section 781(b)(3) of the Act directs
Commerce to consider additional factors
in determining whether to include
merchandise assembled or completed in
a foreign country within the scope of the
order, such as: ‘‘(A) the pattern of trade,
including sourcing patterns, (B) whether
the manufacturer or exporter of the
merchandise . . . is affiliated with the
person who uses the merchandise . . .
to assemble or complete in the foreign
country the merchandise that is
subsequently imported into the United
States, and (C) whether imports into the
foreign country of the merchandise . . .
have increased after the initiation of the
investigation which resulted in the
issuance of such order or finding.’’
Regarding patterns of trade, the
domestic producers contend that
exports of CRS from Vietnam to the
United States skyrocketed as exports
from Korea declined in the period after
37 Id.
at 19.
at 19–20 (citing CRS China Circumvention
Final and the accompanying Issues and Decision
Memorandum at 10, 21, and 21).
39 Id. at 21 (citing Cold-Rolled Steel Flat Products
from China and Japan, Inv. Nos. 701–TA–541 and
731–TA–1284 and 1286, USITC Publication 4619
(July 2016) (Final) at VII–30 (Table VII–41)).
40 Id. at 20–21 and exhibit 13.
38 Id.
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17:06 Aug 01, 2018
Jkt 244001
the initiation of the underlying
investigation, as compared to the period
before it.41 The domestic producers
further explain that while recent exports
of CRS from Vietnam to the United
States have declined slightly, this
decline is largely due to Commerce’s
investigation of circumvention of the
AD and CVD orders on CRS from the
China.42 The domestic producers also
point to the fact that exports of HRS
from Korea to Vietnam also increased
after the original investigations
commenced.43 Finally, regarding
affiliation, the domestic producers point
out that major Vietnamese CRS
producer POSCO Vietnam is wholly
owned by Korea’s largest steel
manufacturer, POSCO.44
Analysis of the Allegations
Based on our analysis of the domestic
producer’s anti-circumvention
allegations and the information
provided therein, Commerce determines
that anti-circumvention inquiries of the
AD and CVD orders on CRS from Korea
are warranted.
With regard to whether the
merchandise from Vietnam is of the
same class or kind as the merchandise
produced in Korea, the domestic
producers presented information to
Commerce indicating that, pursuant to
section 781(b)(1)(A) of the Act, the
merchandise being produced in and/or
exported from Vietnam is of the same
class or kind as CRS produced in Korea,
which is subject to the Orders.45
Consequently, Commerce finds that the
domestic producers provided sufficient
information in their requests regarding
the class or kind of merchandise to
support the initiation of these anticircumvention inquiries.
With regard to completion or
assembly of merchandise in a foreign
country, pursuant to section 781(b)(1)(B)
of the Act, the domestic producers also
presented information to Commerce
indicating that the CRS exported from
Vietnam to the United States is
produced in Vietnam using HRS from
Korea.46 We find that the information
presented by the domestic producers
regarding this criterion supports its
request to initiate these anticircumvention inquiries.
Commerce finds that the domestic
producers sufficiently addressed the
factors described in sections
781(b)(1)(C) and 781(b)(2) of the Act
41 Id.
at 22.
42 Id.
43 Id.
44 Id.
45 Id.
46 Id.
PO 00000
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at 5–9, Exhibit 3, Exhibit 4, and Exhibit 5.
Frm 00012
Fmt 4703
Sfmt 4703
regarding whether the process of
assembly or completion of CRS in
Vietnam is minor or insignificant. In
particular, information in the domestic
producers’ submission indicates that: (1)
The level of investment in cold-rolling
facilities is minimal when compared
with the level of investment for basic
steel making facilities; 47 (2) there is
little or no research and development
taking place in Vietnam; 48 (3) the CRS
production processes involve the simple
processing of HRS from a country
subject to the Orders; 49 (4) the CRS
production facilities in Vietnam are
more limited compared to facilities in
Korea; 50 and (5) the value of the
processing performed in Vietnam is a
small proportion of the value of the CRS
imported into the United States.51
With respect to the value of the
merchandise produced in Korea,
pursuant to section 781(b)(1)(D) of the
Act, the domestic producers relied on
published sources, Commerce’s prior
conclusions in CRS China
Circumvention Final, and information
presented in the ‘‘minor or insignificant
process’’ portion of its anticircumvention allegation to indicate
that the value of the key material, HRS,
produced in Korea is significant relative
to the total value of the CRS exported
to the United States.52 We find that this
information adequately meets the
requirements of this factor, as discussed
above, for the purposes of initiating
these anti-circumvention inquiries.
Finally, with respect to the additional
factors listed under section 781(b)(3) of
the Act, we find that the domestic
producers presented evidence
indicating that shipments of CRS from
Vietnam to the United States increased
since the imposition of the Orders 53 and
that shipments of HRS from Korea to
Vietnam also increased since the Orders
took effect.54 Furthermore, we find that
the domestic producers have presented
evidence that the largest Korean
manufacturer of CRS (POSCO) is
affiliated with a company in Vietnam
that completes the merchandise.55
Accordingly, we are initiating formal
anti-circumvention inquiries concerning
the AD and CVD orders on CRS from
Korea, pursuant to section 781(b) of the
Act.
As these inquiries are initiated on a
country-wide basis (i.e., not exclusive to
47 Id.
at 10–12.
at 12–13.
49 Id. at 14–18.
50 Id. at 18–19.
51 Id. at 19–21.
52 Id. at 14–18.
53 Id. at 5.
54 Id. at 6.
55 Id. at 6 and Exhibit 2.
48 Id.
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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices
daltland on DSKBBV9HB2PROD with NOTICES
the producers mentioned immediately
above), Commerce intends to issue
questionnaires to solicit information
from the Vietnamese producers and
exporters concerning their shipments of
CRS to the United States and the origin
of the imported HRS being processed
into CRS. A company’s failure to
respond completely to Commerce’s
requests for information may result in
the application of partial or total facts
available, pursuant to section 776(a) of
the Act, which may include adverse
inferences, pursuant to section 776(b) of
the Act.
While we believe sufficient factual
information has been submitted by the
domestic producers supporting their
request for inquiries, we do not find that
the record supports the simultaneous
issuance of a preliminary ruling. Such
inquiries are by their nature typically
complicated and can require
information regarding production in
both the country subject to the order
and the third country completing the
product. As noted above, Commerce
intends to request additional
information regarding the statutory
criteria to determine whether shipments
of CRS from Vietnam are circumventing
the AD and CVD orders on CRS from
Korea. Thus, with further development
of the record required before a
preliminary ruling can be issued,
Commerce does not find it appropriate
to issue a preliminary ruling at this
time.
Notification to Interested Parties
In accordance with 19 CFR
351.225(e), Commerce finds that the
issue of whether a product is included
within the scope of an order cannot be
determined based solely upon the
application and the descriptions of the
merchandise. Accordingly, Commerce
will notify by mail all parties on
Commerce’s scope service list of the
initiation of these anti-circumvention
inquiries. In addition, in accordance
with 19 CFR 351.225(f)(1)(i) and (ii), in
this notice of initiation issued under 19
CFR 351.225(e), we have included a
description of the product that is the
subject of these anti-circumvention
inquiries (i.e., CRS that contains the
characteristics as provided in the scope
of the Orders) and an explanation of the
reasons for Commerce’s decision to
initiate an anti-circumvention inquiry,
as provided above.
In accordance with 19 CFR
351.225(l)(2), if Commerce issues a
preliminary affirmative determination,
we will then instruct U.S. Customs and
Border Protection to suspend
liquidation and require a cash deposit of
estimated antidumping and
VerDate Sep<11>2014
17:06 Aug 01, 2018
Jkt 244001
countervailing duties, at the applicable
rate, for each unliquidated entry of the
merchandise at issue, entered or
withdrawn from warehouse for
consumption on or after the date of
initiation of the inquiry. Commerce will
establish a schedule for questionnaires
and comments on the issues. In
accordance with section 781(f) of the
Act and 19 CFR 351.225(f)(5),
Commerce intends to issue its final
determination within 300 days of the
date of publication of this initiation.
This notice is published in
accordance with 19 CFR 351.225(f).
Dated: July 27, 2018.
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.
[FR Doc. 2018–16566 Filed 8–1–18; 8:45 am]
37795
information for the enforcement of
fishery regulations.
Affected Public: Business or other forprofit organizations; individuals or
households.
Frequency: On occasion.
Respondent’s Obligation: Mandatory.
This information collection request
may be viewed at reginfo.gov. Follow
the instructions to view Department of
Commerce collections currently under
review by OMB.
Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to OIRA_Submission@
omb.eop.gov or fax to (202) 395–5806.
Dated: July 27, 2018.
Sarah Brabson,
NOAA PRA Clearance Officer.
[FR Doc. 2018–16500 Filed 8–1–18; 8:45 am]
BILLING CODE 3510–22–P
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Submission for OMB Review;
Comment Request
The Department of Commerce will
submit to the Office of Management and
Budget (OMB) for clearance the
following proposal for collection of
information under the provisions of the
Paperwork Reduction Act (44 U.S.C.
Chapter 35).
Agency: National Oceanic and
Atmospheric Administration (NOAA).
Title: Documentation of fish harvest.
OMB Control Number: 0648–0365.
Form Number(s): None.
Type of Request: Regular (extension of
a currently approved information
collection).
Number of Respondents: 414.
Average Hours per Response: 10
minutes.
Burden Hours: 69.
Needs and Uses: The seafood dealers
who process red porgy, greater
amberjack, gag grouper, black grouper,
red grouper, scamp, red hind, rock hind,
yellowmouth grouper, yellowfin
grouper, graysby or coney during
seasonal fishery closures for applicable
species must maintain documentation,
as specified in 50 CFR part 300 subpart
K and 50 CFR 622.192(i), that such fish
were harvested from areas other than
state or Federal waters in the South
Atlantic. The documentation includes
information on the vessel that harvested
the fish, and where and when the fish
were offloaded. NMFS requires the
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Fmt 4703
Sfmt 4703
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XG353
Atlantic Highly Migratory Species;
Meeting of the Atlantic Highly
Migratory Species Advisory Panel
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meeting and
webinar/conference call.
AGENCY:
NMFS will hold a 2-day
Atlantic Highly Migratory Species
(HMS) Advisory Panel (AP) meeting in
September 2018. The intent of the
meeting is to consider options for the
conservation and management of
Atlantic HMS. The meeting is open to
the public.
DATES: The AP meeting and webinar
will be held from 8:30 a.m. to 6 p.m. on
Wednesday, September 5, and from 8:30
a.m. to 3 p.m. on Thursday, September
6.
ADDRESSES: The meeting will be held at
the Sheraton Silver Spring Hotel, 8777
Georgia Avenue, Silver Spring, MD
20910.
The meeting on Wednesday,
September 5, and Thursday, September
6, will also be accessible via conference
call and webinar. Conference call and
webinar access information are available
at: https://www.fisheries.noaa.gov/
event/september-2018-hms-advisorypanel-meeting. Once finalized, the
meeting agenda, presentations/
SUMMARY:
E:\FR\FM\02AUN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)]
[Notices]
[Pages 37790-37795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16566]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-881, C-580-882]
Certain Cold-Rolled Steel Flat Products From the Republic of
Korea: Initiation of Anti-Circumvention Inquiries on the Antidumping
Duty and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from ArcelorMittal USA LLC, Nucor
Corporation, United States Steel Corporation, Steel Dynamics, Inc. and
California Steel Industries (collectively, the domestic producers), the
Department of Commerce (Commerce) is initiating a country-wide anti-
circumvention inquiries to determine whether imports of certain cold-
rolled steel flat products (CRS), which are completed in the Socialist
Republic of Vietnam (Vietnam) from hot-rolled steel (HRS) produced in
the Republic of Korea (Korea), are circumventing the antidumping duty
(AD) and countervailing duty (CVD) orders on CRS from Korea.
DATES: Applicable August 2, 2018.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold or Fred Baker, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1121 or (202) 482-2924,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 28, 2015, AK Steel Corporation, ArcelorMittal USA LLC,
Nucor Corporation, Steel Dynamics, Inc., and the United States Steel
Corporation (the domestic producers) filed petitions seeking the
imposition of antidumping and countervailing duties on imports of CRS
from Brazil, the
[[Page 37791]]
People's Republic of China, India, Japan, Korea, the Netherlands,
Russia, and the United Kingdom.\1\ In response to these petitions,
Commerce initiated AD and CVD investigations on August 24, 2015.\2\
Following Commerce's final affirmative determinations of dumping and
countervailable subsidies,\3\ and the U.S. International Trade
Commission (ITC)'s finding of material injury,\4\ Commerce issued AD
and CVD orders on imports of CRS from Korea (collectively, Orders).\5\
---------------------------------------------------------------------------
\1\ See Petitioners' Letter, ``Certain Cold-Rolled Steel Flat
Products from Brazil, China, India, Japan, Korea, Netherlands,
Russia, and the United Kingdom,'' dated July 28, 2015.
\2\ See Certain Cold-Rolled Steel Flat Products from Brazil,
India, the People's Republic of China, the Republic of Korea, and
the Russian Federation: Initiation of Countervailing Duty
Investigations, 80 FR 51206 (August 24, 2015); and Certain Cold-
Rolled Steel Flat Products from Brazil, the People's Republic of
China, India, Japan, the Republic of Korea, the Netherlands, the
Russian Federation, and the United Kingdom: Initiation of Less-Than-
Fair-Value Investigations, 80 FR 51198 (August 24, 2015).
\3\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Final Determination of Sales at Less Than Fair
Value, 81 FR 49953 (July 29, 2016); and Countervailing Duty
Investigation of Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Final Affirmative Determination, 81 FR 49943
(July 29, 2016).
\4\ See Cold-Rolled Steel Flat Products from Brazil, India,
Korea, Russia, and the United Kingdom; Determinations, 81 FR 63806
(September 16, 2016).
\5\ See Certain Cold-Rolled Steel Flat Products from Brazil,
India, the Republic of Korea, and the United Kingdom: Amended Final
Affirmative Antidumping Determinations for Brazil and the United
Kingdom and Antidumping Duty Orders, 81 FR 64432 (September 20,
2016) (AD Order); see also Certain Cold-Rolled Steel Flat Products
from Brazil, India, and the Republic of Korea: Amended Final
Affirmative Countervailing Duty Determination and Countervailing
Duty Order (the Republic of Korea) and Countervailing Duty Orders
(Brazil and India), 81 FR 64436 (September 20, 2016) (CVD Order)
(collectively Orders).
---------------------------------------------------------------------------
On June 12, 2018, pursuant to section 781(b) of the Tariff Act of
1930, as amended (the Act) and 19 CFR 351.225(h), the domestic
producers submitted a request for Commerce to initiate anti-
circumvention inquiries to determine whether entities in Vietnam are
circumventing the Orders by exporting, to the United States, CRS which
is completed or assembled in Vietnam using HRS sourced from Korea.\6\
Further, pursuant to 19 CFR 351.225(f), the domestic producers request
that Commerce initiate anti-circumvention inquiries and issue in
conjunction with initiation of the inquiries a preliminary
determination of circumvention of the Orders to suspend liquidation of
imports of CRS from Vietnam.\7\
---------------------------------------------------------------------------
\6\ See the Domestic Producers' Letter, ``Certain Cold-Rolled
Steel Flat Products from the Republic of Korea: Request for
Circumvention Ruling Pursuant to Section 781(b) of the Tariff Act of
1930,'' dated June 12, 2018 (Anti-Circumvention Ruling Request).
\7\ Id., at 25.
---------------------------------------------------------------------------
Scope of the Orders
The products covered by the orders are certain cold-rolled (cold-
reduced), flat-rolled steel products, whether or not annealed, painted,
varnished, or coated with plastics or other non-metallic substances.
The products covered do not include those that are clad, plated, or
coated with metal. The products covered include coils that have a width
or other lateral measurement (``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 the orders 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, high strength low alloy (HSLA) steels, motor lamination
steels, Advanced High Strength Steels (AHSS), and Ultra High Strength
Steels (UHSS). 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. Motor lamination
steels contain micro-alloying levels of elements such as silicon and
aluminum. AHSS and UHSS are considered high tensile strength and high
elongation steels, although AHSS and UHSS are covered whether or not
they are high tensile strength or high elongation steels.
Subject merchandise includes cold-rolled 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 orders if
performed in the country of manufacture of the cold-rolled 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 the orders unless
specifically excluded. The following products are outside of and/or
specifically excluded from the scope of the orders:
Ball bearing steels; \8\
---------------------------------------------------------------------------
\8\ Ball bearing steels are defined as steels which contain, in
addition to iron, each of the following elements by weight in the
amount specified: (i) Not less than 0.95 nor more than 1.13 percent
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv)
none, or not more than 0.03 percent of phosphorus; (v) not less than
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25
nor more than 1.65 percent of chromium; (vii) none, or not more than
0.28 percent of nickel; (viii) none, or not more than 0.38 percent
of copper; and (ix) none, or not more than 0.09 percent of
molybdenum.
---------------------------------------------------------------------------
[[Page 37792]]
Tool steels; \9\
---------------------------------------------------------------------------
\9\ Tool steels are defined as steels which contain the
following combinations of elements in the quantity by weight
respectively indicated: (i) More than 1.2 percent carbon and more
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon
and 1.25 percent or more but less than 10.5 percent chromium; or
(iii) not less than 0.85 percent carbon and 1 percent to 1.8
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent,
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive,
molybdenum; or (v) not less than 0.5 percent carbon and not less
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent
carbon and not less than 5.5 percent tungsten.
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Silico-manganese steel; \10\
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\10\ Silico-manganese steel is defined as steels containing by
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or
more but not more than 1.9 percent of manganese, and (iii) 0.6
percent or more but not more than 2.3 percent of silicon.
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Grain-oriented electrical steels (GOES) as defined in the
final determination of the U.S. Department of Commerce in Grain-
Oriented Electrical Steel From Germany, Japan, and Poland.\11\
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\11\ Grain-Oriented Electrical Steel from Germany, Japan, and
Poland: Final Determinations of Sales at Less Than Fair Value and
Certain Final Affirmative Determination of Critical Circumstances,
79 FR 42501, 42503 (July 22, 2014). This determination defines
grain-oriented electrical steel as ``a flat-rolled alloy steel
product containing by weight at least 0.6 percent but not more than
6 percent of silicon, not more than 0.08 percent of carbon, not more
than 1.0 percent of aluminum, and no other element in an amount that
would give the steel the characteristics of another alloy steel, in
coils or in straight lengths.''
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Non-Oriented Electrical Steels (NOES), as defined in the
antidumping orders issued by the U.S. Department of Commerce in Non-
Oriented Electrical Steel From the People's Republic of China, Germany,
Japan, the Republic of Korea, Sweden, and Taiwan.\12\
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\12\ Non-Oriented Electrical Steel from the People's Republic of
China, Germany, Japan, the Republic of Korea, Sweden, and Taiwan:
Antidumping Duty Orders, 79 FR 71741, 71741-42 (December 3, 2014).
The orders define NOES as ``cold-rolled, flat-rolled, alloy steel
products, whether or not in coils, regardless of width, having an
actual thickness of 0.20 mm or more, in which the core loss is
substantially equal in any direction of magnetization in the plane
of the material. The term `substantially equal' means that the cross
grain direction of core loss is no more than 1.5 times the straight
grain direction (i.e., the rolling direction) of core loss. NOES has
a magnetic permeability that does not exceed 1.65 Tesla when tested
at a field of 800 A/m (equivalent to 10 Oersteds) along (i.e.,
parallel to) the rolling direction of the sheet (i.e.,
B800 value). NOES contains by weight more than 1.00
percent of silicon but less than 3.5 percent of silicon, not more
than 0.08 percent of carbon, and not more than 1.5 percent of
aluminum. NOES has a surface oxide coating, to which an insulation
coating may be applied.''
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The products subject to the orders are currently classified in the
Harmonized Tariff Schedule of the United States (HTSUS) under item
numbers: 7209.15.0000, 7209.16.0030, 7209.16.0060, 7209.16.0070,
7209.16.0091, 7209.17.0030, 7209.17.0060, 7209.17.0070, 7209.17.0091,
7209.18.1530, 7209.18.1560, 7209.18.2510, 7209.18.2520, 7209.18.2580,
7209.18.6020, 7209.18.6090, 7209.25.0000, 7209.26.0000, 7209.27.0000,
7209.28.0000, 7209.90.0000, 7210.70.3000, 7211.23.1500, 7211.23.2000,
7211.23.3000, 7211.23.4500, 7211.23.6030, 7211.23.6060, 7211.23.6090,
7211.29.2030, 7211.29.2090, 7211.29.4500, 7211.29.6030, 7211.29.6080,
7211.90.0000, 7212.40.1000, 7212.40.5000, 7225.50.6000, 7225.50.8080,
7225.99.0090, 7226.92.5000, 7226.92.7050, and 7226.92.8050.
The products subject to the orders may also enter under the
following HTSUS numbers: 7210.90.9000, 7212.50.0000, 7215.10.0010,
7215.10.0080, 7215.50.0016, 7215.50.0018, 7215.50.0020, 7215.50.0061,
7215.50.0063, 7215.50.0065, 7215.50.0090, 7215.90.5000, 7217.10.1000,
7217.10.2000, 7217.10.3000, 7217.10.7000, 7217.90.1000, 7217.90.5030,
7217.90.5060, 7217.90.5090, 7225.19.0000, 7226.19.1000, 7226.19.9000,
7226.99.0180, 7228.50.5015, 7228.50.5040, 7228.50.5070, 7228.60.8000,
and 7229.90.1000.
The HTSUS subheadings above are provided for convenience and U.S.
Customs purposes only. The written description of the scope of the
orders is dispositive.
Merchandise Subject to the Anti-Circumvention Inquiries
These anti-circumvention inquiries cover imports of CRS exported
from Vietnam manufactured from HRS produced in Korea.
Initiation of Anti-Circumvention Inquiries
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an AD or CVD order when merchandise of the same class
or kind subject to the order is completed or assembled in a foreign
country other than the country to which the order applies. In
conducting an anti-circumvention inquiry, under section 781(b)(1) of
the Act, Commerce relies on the following criteria: (A) Merchandise
imported into the United States is of the same class or kind as any
merchandise produced in a foreign country that is the subject of an
antidumping or countervailing duty order or finding; (B) before
importation into the United States, such imported merchandise is
completed or assembled in another foreign country from merchandise
which is subject to the order or merchandise which is produced in the
foreign country that is subject to the order; (C) the process of
assembly or completion in the foreign country referred to in section
(B) is minor or insignificant; (D) the value of the merchandise
produced in the foreign country to which the AD or CVD order applies is
a significant portion of the total value of the merchandise exported to
the United States; and (E) the administering authority determines that
action is appropriate to prevent evasion of such order or finding. As
discussed below, the domestic producers provided evidence with respect
to these criteria.
A. Merchandise of the Same Class or Kind
The domestic producers claim that CRS exported to the United States
is the same class or kind as that covered by the Orders in these
inquiries.\13\ The domestic producers provided evidence to show that
the merchandise from Vietnam enters the United States under the same
tariff classification as subject merchandise.\14\
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\13\ See Anti-Circumvention Ruling Request at 7. See also
sections 781(b)(1)(A)(i) and (iii) of the Act.
\14\ See Anti-Circumvention Ruling Request at Exhibit 1.
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B. Completion of Merchandise in a Foreign Country
The domestic producers note that section 781(b)(l)(B)(ii) of the
Act requires that Commerce ``must determine whether, prior to
importation into the United States, the merchandise in the third
country is completed from merchandise produced in the country subject
to the antidumping or countervailing duty order.'' \15\ The domestic
producers presented evidence showing substantial imports of Korean HRS
into Vietnam following Commerce's August 2015 initiation of AD and CVD
investigations concerning CRS from Korea.\16\ Additionally, the
domestic producers provide evidence that, from 2015 through 2017,
little to no capacity existed in Vietnam to produce HRS, and that HRS
production in Vietnam did not begin until 2017.\17\ Nevertheless, the
domestic producers maintain that despite Vietnamese imports of HRS
being significant even before the initiation of AD and CVD
investigations on CRS from Korea in mid-2015, imports increased by 26
percent between 2014 and 2016, before
[[Page 37793]]
dropping only slightly in 2017.\18\ The domestic producers also provide
information reflecting the fact that imports into the United States of
CRS from Korea significantly decreased after the imposition of the
Orders, and that imports into the United States of CRS from Vietnam, as
well as imports into Vietnam of Korean HRS, also increased
significantly.\19\
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\15\ Id. at 7. See also section 781(b)(1)(B)(ii) of the Act.
\16\ Id. at 7-8 and Exhibit 3
\17\ Id. at 8, Exhibit 4, and Exhibit 5.
\18\ Id. at 8 and Exhibit 3.
\19\ Id. at 5-6, 8-9, and Exhibit 1.
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C. Minor or Insignificant Process
The domestic producers maintain that the process for completing CRS
from HRS is minor or insignificant. Under section 781(b)(2) of the Act,
Commerce considers five factors to determine whether the process of
assembly or completion in the foreign country in which the merchandise
is completed or assembled is minor or insignificant: (A) The level of
investment in the foreign country in which the merchandise is completed
or assembled; (B) the level of research and development in the foreign
country in which the merchandise is completed or assemble; (C) the
nature of the production process in the foreign country in which the
merchandise is completed or assembled; (D) the extent of production
facilities in the foreign country in which the merchandise is completed
or assembled, and (E) whether the value of the processing performed in
the foreign country in which the merchandise is completed or assembled
represents a small proportion of the value of the merchandise imported
into the United States.
(1) Level of Investment
The domestic producers contend that the level of investment
necessary to construct a factory that can produce CRS from HRS in
Vietnam is insignificant. In support of its contention, the domestic
producers compare the investment necessary to install a cold-rolling
facility with the investment necessary to produce HRS using a fully-
integrated production process.\20\ The domestic producers cite
Commerce's findings in the earlier anti-circumvention ruling regarding
Vietnamese CRS using Chinese HRS inputs (i.e., substrate).\21\ There,
Commerce pointed to record evidence showing the cost to build an
integrated steel mill in China to produce HRS was in the range of 250
million to 10 billion U.S. dollars (USD) and that the cost to build a
cold-rolling mill in Vietnam to produce CRS from HRS substrate was as
low as 28 million USD.\22\ The domestic producers also provide evidence
that the cost to build one integrated steel mill in Korea was 5 billion
USD, and that the cost of building an integrated steel mill in Vietnam
to one Vietnamese firm, Formosa Ha Tinh, was 10.6 billion USD.\23\
Finally, the domestic producers provided evidence that the cost of
building a coated steel sheet factory, including a cold-rolling mill,
was only 70 million USD.\24\ The domestic producers, therefore,
conclude that in comparison to the investment necessary for an
integrated steel mill in Korea, the cost of a cold-rolling mill in
Vietnam is insignificant.\25\
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\20\ Id. at 10-11.
\21\ Id.
\22\ Id. (citing Certain Cold-Rolled Steel Flat Products from
the People's Republic of China: Affirmative Preliminary
Determination of Anti Circumvention Inquiries on the Antidumping
Duty and Countervailing Duty Orders, 82 FR 58178 (December 11, 2017)
(CRS China Circumvention Preliminary) and accompanying Preliminary
Decision Memorandum at 16-17; and Certain Cold-Rolled Steel Flat
Products from the People's Republic of China: Affirmative Final
Determination of Circumvention of the Antidumping Duty and
Countervailing Duty Orders, 83 FR 23891 (May 23, 2018) (CRS China
Circumvention Final), and the accompanying Issues and Decision
Memorandum at 32).
\23\ See Anti-Circumvention Ruling Request at 11-12.
\24\ Id. at 12.
\25\ Id.
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(2) Level of Research and Development
The domestic producers assert that the level of research and
development (R&D) in Vietnam is either minimal or non-existent.\26\ The
domestic producers cite to Commerce's findings in CRS China
Circumvention Final, where Commerce found that no R&D investments had
been made by mandatory respondents POSCO Vietnam and VNSteel Phu My
Flat Steel Limited.\27\ The domestic producers contend that rather than
developing its own technology, CRS producers in Vietnam are using
technology developed abroad.\28\ As an example of Vietnamese producers
using technology developed abroad, the domestic producers provided
evidence that Dong A, a Vietnamese steel company, uses European and
Japanese equipment in its coated sheet facility (which includes a
pickling and cold-rolling mill).\29\ In contrast, the domestic
producers point to POSCO's R&D activities in Korea, which included
employing an R&D laboratory staff of 934 personnel as of December 31,
2017, as well as total R&D expenses of hundreds of billions of Korean
Won from 2015 through 2017.\30\
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\26\ Id. at 12-14.
\27\ Id. at 12-13 (citing CRS China Circumvention Final and the
accompanying Issues and Decision Memorandum at 37-38).
\28\ Id. at 13.
\29\ Id.
\30\ Id. at 13-14.
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(3) Nature of Production Process
According to the domestic producers, the production process
undertaken by Vietnamese producers of CRS is less complex than
steelmaking, and it is minimal in nature.\31\ Citing the ITC report in
the underlying investigation of CRS from Korea, the domestic producers
describe the process to produce HRS as consisting of three distinct
stages (melting and refining steel, casting molten steel into semi-
finished forms, and hot-rolling the semi-finished forms into HRS).\32\
In contrast, the domestic producers provide information indicating that
the production of CRS from HRS involves less processing (cleaning and
pickling, rolling, annealing, and tempering).\33\ Further, the domestic
producers cite Commerce's findings in CRS China Circumvention Final,
where Commerce found the production process to produce CRS from HRS
inputs in Vietnam to be comparatively minor.\34\
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\31\ Id. at 14-18.
\32\ Id. at 15-18 (citing Certain Hot-Rolled Steel Flat Products
from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and
The United Kingdom, Inv. Nos. 701-TA-545-547 and 73l-TA-1291-1297,
USITC Publication 4570 (Oct. 2015) (Preliminary) at I-18 to I-22).
\33\ See id. at 17 (citing Cold-Rolled Steel Flat Products from
Brazil, China, India, Japan, Korea, Netherlands, Russia and the
United Kingdom, Inv. Nos. 701-TA-540-544 and 731-TA-1283-1290, USITC
Publication 4564 (Sept. 2015) (Preliminary) at 1-21).
\34\ See id. at 14-15 (citing CRS China Circumvention Final and
the accompanying Issues and Decision Memorandum at 39).
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(4) Extent of Production Facilities in Vietnam
The domestic producers provide information indicating that
production facilities in Vietnam are more limited compared to
facilities in Korea.\35\ They maintain that Vietnam had little to no
HRS capacity during the relevant period. The domestic producers also
point to CRS China Circumvention Final, where Commerce found that ``the
vast majority of production activities necessary to produce CRS occur
at the molten steel, semi-finished steel, and hot-rolling stages.''
\36\ The domestic producers conclude that the extent of production
facilities in Vietnam required to convert Korean HRS to CRS are no
greater than those facilities
[[Page 37794]]
required to convert Chinese HRS to CRS.\37\
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\35\ Id. at 18-19 (citing CRS China Circumvention Final and the
accompanying Issues and Decision Memorandum at 39).
\36\ Id. at 18-19 (citing CRS China Circumvention Final and the
accompanying Issues and Decision Memorandum at 39).
\37\ Id. at 19.
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(5) Value of Processing in Vietnam
The domestic producers assert that producing HRS in Korea accounts
for a large percentage of the total value of CRS that is produced in
Vietnam using HRS from Korea. As support, the domestic producers again
point to CRS China Circumvention Final, where Commerce found that CRS
producers did not incur significant additional costs in the production
of CRS, beyond the cost of HRS substrate inputs, that the value of
further processing in Vietnam comprised only a small proportion of the
total export value, and that the value of HRS produced in China
constituted a significant portion of the value of the CRS exported to
the United States.\38\ Additionally, the domestic producers cite the
recent ITC investigation of CRS from China and Japan, stating that the
information contained therein demonstrates that the cost of Korean HRS
inputs account for ``roughly 81 to 89 percent'' of the value of
CRS.\39\ Finally, citing a 2017 Financial Times article, the domestic
producers further argue that the cost of producing HRS in Korea is
higher than the cost of producing HRS in China.\40\
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\38\ Id. at 19-20 (citing CRS China Circumvention Final and the
accompanying Issues and Decision Memorandum at 10, 21, and 21).
\39\ Id. at 21 (citing Cold-Rolled Steel Flat Products from
China and Japan, Inv. Nos. 701-TA-541 and 731-TA-1284 and 1286,
USITC Publication 4619 (July 2016) (Final) at VII-30 (Table VII-
41)).
\40\ Id. at 20-21 and exhibit 13.
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D. Additional Factors To Consider in Determining Whether Action Is
Necessary
Section 781(b)(3) of the Act directs Commerce to consider
additional factors in determining whether to include merchandise
assembled or completed in a foreign country within the scope of the
order, such as: ``(A) the pattern of trade, including sourcing
patterns, (B) whether the manufacturer or exporter of the merchandise .
. . is affiliated with the person who uses the merchandise . . . to
assemble or complete in the foreign country the merchandise that is
subsequently imported into the United States, and (C) whether imports
into the foreign country of the merchandise . . . have increased after
the initiation of the investigation which resulted in the issuance of
such order or finding.''
Regarding patterns of trade, the domestic producers contend that
exports of CRS from Vietnam to the United States skyrocketed as exports
from Korea declined in the period after the initiation of the
underlying investigation, as compared to the period before it.\41\ The
domestic producers further explain that while recent exports of CRS
from Vietnam to the United States have declined slightly, this decline
is largely due to Commerce's investigation of circumvention of the AD
and CVD orders on CRS from the China.\42\ The domestic producers also
point to the fact that exports of HRS from Korea to Vietnam also
increased after the original investigations commenced.\43\ Finally,
regarding affiliation, the domestic producers point out that major
Vietnamese CRS producer POSCO Vietnam is wholly owned by Korea's
largest steel manufacturer, POSCO.\44\
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\41\ Id. at 22.
\42\ Id.
\43\ Id.
\44\ Id.
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Analysis of the Allegations
Based on our analysis of the domestic producer's anti-circumvention
allegations and the information provided therein, Commerce determines
that anti-circumvention inquiries of the AD and CVD orders on CRS from
Korea are warranted.
With regard to whether the merchandise from Vietnam is of the same
class or kind as the merchandise produced in Korea, the domestic
producers presented information to Commerce indicating that, pursuant
to section 781(b)(1)(A) of the Act, the merchandise being produced in
and/or exported from Vietnam is of the same class or kind as CRS
produced in Korea, which is subject to the Orders.\45\ Consequently,
Commerce finds that the domestic producers provided sufficient
information in their requests regarding the class or kind of
merchandise to support the initiation of these anti-circumvention
inquiries.
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\45\ Id. at 7 and Attachment 1.
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With regard to completion or assembly of merchandise in a foreign
country, pursuant to section 781(b)(1)(B) of the Act, the domestic
producers also presented information to Commerce indicating that the
CRS exported from Vietnam to the United States is produced in Vietnam
using HRS from Korea.\46\ We find that the information presented by the
domestic producers regarding this criterion supports its request to
initiate these anti-circumvention inquiries.
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\46\ Id. at 5-9, Exhibit 3, Exhibit 4, and Exhibit 5.
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Commerce finds that the domestic producers sufficiently addressed
the factors described in sections 781(b)(1)(C) and 781(b)(2) of the Act
regarding whether the process of assembly or completion of CRS in
Vietnam is minor or insignificant. In particular, information in the
domestic producers' submission indicates that: (1) The level of
investment in cold-rolling facilities is minimal when compared with the
level of investment for basic steel making facilities; \47\ (2) there
is little or no research and development taking place in Vietnam; \48\
(3) the CRS production processes involve the simple processing of HRS
from a country subject to the Orders; \49\ (4) the CRS production
facilities in Vietnam are more limited compared to facilities in Korea;
\50\ and (5) the value of the processing performed in Vietnam is a
small proportion of the value of the CRS imported into the United
States.\51\
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\47\ Id. at 10-12.
\48\ Id. at 12-13.
\49\ Id. at 14-18.
\50\ Id. at 18-19.
\51\ Id. at 19-21.
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With respect to the value of the merchandise produced in Korea,
pursuant to section 781(b)(1)(D) of the Act, the domestic producers
relied on published sources, Commerce's prior conclusions in CRS China
Circumvention Final, and information presented in the ``minor or
insignificant process'' portion of its anti-circumvention allegation to
indicate that the value of the key material, HRS, produced in Korea is
significant relative to the total value of the CRS exported to the
United States.\52\ We find that this information adequately meets the
requirements of this factor, as discussed above, for the purposes of
initiating these anti-circumvention inquiries.
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\52\ Id. at 14-18.
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Finally, with respect to the additional factors listed under
section 781(b)(3) of the Act, we find that the domestic producers
presented evidence indicating that shipments of CRS from Vietnam to the
United States increased since the imposition of the Orders \53\ and
that shipments of HRS from Korea to Vietnam also increased since the
Orders took effect.\54\ Furthermore, we find that the domestic
producers have presented evidence that the largest Korean manufacturer
of CRS (POSCO) is affiliated with a company in Vietnam that completes
the merchandise.\55\ Accordingly, we are initiating formal anti-
circumvention inquiries concerning the AD and CVD orders on CRS from
Korea, pursuant to section 781(b) of the Act.
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\53\ Id. at 5.
\54\ Id. at 6.
\55\ Id. at 6 and Exhibit 2.
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As these inquiries are initiated on a country-wide basis (i.e., not
exclusive to
[[Page 37795]]
the producers mentioned immediately above), Commerce intends to issue
questionnaires to solicit information from the Vietnamese producers and
exporters concerning their shipments of CRS to the United States and
the origin of the imported HRS being processed into CRS. A company's
failure to respond completely to Commerce's requests for information
may result in the application of partial or total facts available,
pursuant to section 776(a) of the Act, which may include adverse
inferences, pursuant to section 776(b) of the Act.
While we believe sufficient factual information has been submitted
by the domestic producers supporting their request for inquiries, we do
not find that the record supports the simultaneous issuance of a
preliminary ruling. Such inquiries are by their nature typically
complicated and can require information regarding production in both
the country subject to the order and the third country completing the
product. As noted above, Commerce intends to request additional
information regarding the statutory criteria to determine whether
shipments of CRS from Vietnam are circumventing the AD and CVD orders
on CRS from Korea. Thus, with further development of the record
required before a preliminary ruling can be issued, Commerce does not
find it appropriate to issue a preliminary ruling at this time.
Notification to Interested Parties
In accordance with 19 CFR 351.225(e), Commerce finds that the issue
of whether a product is included within the scope of an order cannot be
determined based solely upon the application and the descriptions of
the merchandise. Accordingly, Commerce will notify by mail all parties
on Commerce's scope service list of the initiation of these anti-
circumvention inquiries. In addition, in accordance with 19 CFR
351.225(f)(1)(i) and (ii), in this notice of initiation issued under 19
CFR 351.225(e), we have included a description of the product that is
the subject of these anti-circumvention inquiries (i.e., CRS that
contains the characteristics as provided in the scope of the Orders)
and an explanation of the reasons for Commerce's decision to initiate
an anti-circumvention inquiry, as provided above.
In accordance with 19 CFR 351.225(l)(2), if Commerce issues a
preliminary affirmative determination, we will then instruct U.S.
Customs and Border Protection to suspend liquidation and require a cash
deposit of estimated antidumping and countervailing duties, at the
applicable rate, for each unliquidated entry of the merchandise at
issue, entered or withdrawn from warehouse for consumption on or after
the date of initiation of the inquiry. Commerce will establish a
schedule for questionnaires and comments on the issues. In accordance
with section 781(f) of the Act and 19 CFR 351.225(f)(5), Commerce
intends to issue its final determination within 300 days of the date of
publication of this initiation.
This notice is published in accordance with 19 CFR 351.225(f).
Dated: July 27, 2018.
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.
[FR Doc. 2018-16566 Filed 8-1-18; 8:45 am]
BILLING CODE 3510-DS-P
