Certain Fabricated Structural Steel From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 33224-33227 [2019-14870]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 84, Number 134 (Friday, July 12, 2019)]
[Notices]
[Pages 33224-33227]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14870]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-103]


Certain Fabricated Structural Steel From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination With Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain fabricated structural steel (fabricated structural 
steel) from the People's Republic of China (China). The period of 
investigation is January 1, 2018 through December 31, 2018. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable July 12, 2019.

FOR FURTHER INFORMATION CONTACT: Darla Brown or Ian Hamilton, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1791 or (202) 482-4798, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on March 4, 
2019.\1\ On April 16, 2019, in accordance with section 703(c)(1)(A) of 
the Act, Commerce postponed the preliminary determination of this 
investigation, and the revised deadline is now July 5, 2019.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov, and is available to all parties in the Central 
Records Unit, Room B8024 of the main 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 
electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Certain Fabricated Structural Steel from Canada, Mexico, 
and the People's Republic of China: Initiation of Countervailing 
Duty Investigations, 84 FR 7339 (March 4, 2019) (Initiation Notice).
    \2\ See Certain Fabricated Structural Steel from Canada, Mexico, 
and the People's Republic of China: Postponement of Preliminary 
Determinations in the Countervailing Duty Investigations, 84 FR 
15581 (April 16, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Fabricated Structural Steel 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 Investigation

    The products covered by this investigation are fabricated 
structural steel from China. For a complete description of the scope of 
this investigation, see Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 84 FR 7340.
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    For a summary of the product coverage comments and rebuttal 
comments submitted to the record that have been addressed by Commerce 
for this preliminary determination, and Commerce's accompanying 
discussion and analysis of those comments, see the Preliminary Scope 
Decision Memorandum.\6\ Based on our analysis of those comments, we are 
preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the revised scope in Appendix I.
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    \6\ See Memorandum, ``Fabricated Structural Steel from Canada, 
Mexico, and the People's Republic of China: Preliminary Scope 
Decision,'' dated concurrently with this notice (Preliminary Scope 
Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\7\
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    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of fabricated structural steel from China based 
on a request made by the American Institute of Steel Construction Full 
Member Subgroup (the petitioner).\9\ Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
November 18, 2019, unless postponed.
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    \9\ See Petitioner's Letter, ``Certain Fabricated Structural 
Steel from Canada, Mexico, and the People's Republic of China: 
Request to Postpone Preliminary Antidumping Duty Determination and 
to Align Final Countervailing Duty Determination with Final 
Antidumping Duty Determination,'' dated June 19, 2019.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for

[[Page 33225]]

those companies individually examined, excluding any zero and de 
minimis rates and any rates based entirely under section 776 of the 
Act.
    In this investigation, Commerce preliminarily assigned rates based 
entirely on facts available for 12 companies that failed to respond to 
our quantity and value (Q&V) questionnaire.\10\ Commerce calculated 
individual estimated countervailable subsidy rates for Modern Heavy 
Industries (Taicang) Co., Ltd. (Modern Heavy) and Shanghai Matsuo Steel 
Structure Co., Ltd. (Shanghai Matsuo) that are not zero, de minimis, or 
based entirely on facts otherwise available. Therefore, Commerce 
calculated the all-others rate using a weighted-average of the 
individual estimated subsidy rates calculated for the examined 
respondents using each company's publicly-ranged values for the 
merchandise under consideration.\11\
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    \10\ The companies that did not respond to our Q&V questionnaire 
are: Hongju Metals Co., Ltd.; Huaye Steel Structure Co.; Jiangsu 
Kingmore Storage Equipment; Jiangsu Zhengchang Cereal Oil & Feed; 
Ningbo Jiangbei Huarentai Trade; Ningbo Win Success Machinery Co., 
Ltd.; Shangdong Taipeng Home Products Co.; Sinopec Engineering 
(Group) Co., Ltd.; Sunjoy Industrial Group Limited; Sunjoy 
Industries (Jiashan) Co., Ltd.; Wuxi Huishan Metalwork Technology 
Co., Ltd.; and Yueqing Yihua New Energy Technology.
    \11\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53662-63 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, see the Memorandum, ``Calculation of the `All Others' Rate 
in the Preliminary Determination of the Countervailing Duty 
Investigation of Certain Fabricated Structural Steel from the 
People's Republic of China,'' dated July 5, 2019.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
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    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Shanghai Matsuo: (1) Chixiao Enterprise Co., Ltd.; and (2) Nanshan 
Development (Group) Incorporation.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Hongju Metals Co., Ltd......................................      177.43
Huaye Steel Structure Co....................................      177.43
Jiangsu Kingmore Storage Equipment..........................      177.43
Jiangsu Zhengchang Cereal Oil & Feed........................      177.43
Modern Heavy Industries (Taicang) Co., Ltd..................       30.30
Ningbo Jiangbei Huarentai Trade.............................      177.43
Ningbo Win Success Machinery Co., Ltd.......................      177.43
Shangdong Taipeng Home Products Co..........................      177.43
Shanghai Matsuo Steel Structure Co., Ltd \12\...............       36.07
Sinopec Engineering (Group) Co., Ltd........................      177.43
Sunjoy Industrial Group Limited.............................      177.43
Sunjoy Industries (Jiashan) Co., Ltd........................      177.43
Wuxi Huishan Metalwork Technology Co., Ltd..................      177.43
Yueqing Yihua New Energy Technology.........................      177.43
All Others..................................................       32.64
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Suspension of Liquidation

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments regarding non-scope issues 
may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the last 
verification report is issued in this investigation. Rebuttal briefs, 
limited to issues raised in case briefs covering non-scope issues, may 
be submitted no later than five days after the deadline for submitting 
non-scope related case briefs.\13\
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    \13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Case briefs or other written comments regarding scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than 21 days after the publication of the preliminary AD 
determinations on fabricated structural steel from Canada, China, and 
Mexico in the Federal Register. Rebuttal briefs, limited to issues 
raised in scope case briefs, may be submitted no later than five days 
after the deadline for submitting scope case briefs. For all scope 
issues, parties must file separate and identical briefs and/or rebuttal 
briefs on the records of all of the ongoing CVD and AD investigations 
of fabricated structural steel from Canada, China, and Mexico through 
ACCESS. No new factual information may be included in scope case briefs 
or rebuttal scope briefs.
    Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit 
case briefs or rebuttal briefs in this investigation 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.
    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, 
Commerce 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

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its determination. If 
the final determination is affirmative, the ITC will determine before 
the later of 120 days after the date of this preliminary determination 
or 45 days after the final

[[Page 33226]]

determination whether imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: July 5, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is carbon and 
alloy fabricated structural steel. Fabricated structural steel is 
made from steel in which: (1) Iron predominates, by weight, over 
each of the other contained elements; and (2) the carbon content is 
two percent or less by weight. Fabricated structural steel products 
are steel products that have been fabricated for erection or 
assembly into structures, including, but not limited to, buildings 
(commercial, office, institutional, and multi-family residential); 
industrial and utility projects; parking decks; arenas and 
convention centers; medical facilities; and ports, transportation 
and infrastructure facilities. Fabricated structural steel is 
manufactured from carbon and alloy (including stainless) steel 
products such as angles, columns, beams, girders, plates, flange 
shapes (including manufactured structural shapes utilizing welded 
plates as a substitute for rolled wide flange sections), channels, 
hollow structural section (HSS) shapes, base plates, and plate-work 
components. Fabrication includes, but is not limited to cutting, 
drilling, welding, joining, bolting, bending, punching, pressure 
fitting, molding, grooving, adhesion, beveling, and riveting and may 
include items such as fasteners, nuts, bolts, rivets, screws, 
hinges, or joints.
    The inclusion, attachment, joining, or assembly of non-steel 
components with fabricated structural steel does not remove the 
fabricated structural steel from the scope.
    Fabricated structural steel is covered by the scope of the 
investigation regardless of whether it is painted, varnished, or 
coated with plastics or other metallic or non-metallic substances 
and regardless of whether it is assembled or partially assembled, 
such as into modules, modularized construction units, or sub-
assemblies of fabricated structural steel.
    Subject merchandise includes fabricated structural steel that 
has been assembled or further processed in the subject country or a 
third country, including but not limited to painting, varnishing, 
trimming, cutting, drilling, welding, joining, bolting, punching, 
bending, beveling, riveting, galvanizing, coating, and/or slitting 
or any other processing that would not otherwise remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the fabricated structural steel.
    All products that meet the written physical description of the 
merchandise covered by the investigation are within the scope of the 
investigation unless specifically excluded or covered by the scope 
of an existing countervailing duty order.
    Specifically excluded from the scope of the investigation are:
    1. Fabricated steel concrete reinforcing bar (rebar) if: (i) It 
is a unitary piece of fabricated rebar, not joined, welded, or 
otherwise connected with any other steel product or part; or (ii) it 
is joined, welded, or otherwise connected only to other rebar.
    2. Fabricated structural steel for bridges and bridge sections 
that meets American Association of State and Highway and 
Transportation Officials (AASHTO) bridge construction requirements 
or any state or local derivatives of the AASHTO bridge construction 
requirements.
    3. Pre-engineered metal building systems, which are defined as 
complete metal buildings that integrate steel framing, roofing and 
walls to form one, pre-engineered building system, that meet Metal 
Building Manufacturers Association guide specifications. Pre-
engineered metal building systems are typically limited in height to 
no more than 60 feet or two stories.
    4. Steel roof and floor decking systems that meet Steel Deck 
Institute standards.
    5. Open web steel bar joists and joist girders that meet Steel 
Joist Institute specifications.
    6. Also excluded from the scope of the investigation is 
scaffolding that complies with ANSI/ASSE A10.8-2011--Scaffolding 
Safety Requirements, and/or Occupational Safety and Health 
Administration regulations at 29 CFR part 1926 subpart L--Scaffolds. 
The outside diameter of the scaffold tubing covered by this 
exclusion ranges from 25mm to 80mm.
    7. Excluded from the scope of the investigation are access 
flooring systems panels and accessories, where such panels have a 
total thickness ranging from 0.75 inches to 1.75 inches and consist 
of concrete, wood, other non-steel materials, or hollow space 
permanently attached to a top and bottom layer of galvanized or 
painted steel sheet or formed coil steel, the whole of which has 
been formed into a square or rectangle having a measurement of 24 
inches on each side +/-0.1 inch; 24 inches by 30 inches +/-0.1 inch; 
or 24 by 36 inches +/-0.1 inch.
    8. Excluded from the investigation are the following types of 
steel poles, segments of steel poles, and steel components of those 
poles:
     Steel Electric Transmission Poles, or segments of such 
poles, that meet (1) the American Society of Civil Engineers 
(ASCE)--Design of Steel Transmission Pole Structures, ASCE/SEI 48 or 
(2) the USDA RUS bulletin 1724E-214 Guide specification for standard 
class Steel Transmission Poles. The exclusion for steel electric 
transmission poles also encompasses the following components 
thereof: Transmission arms which attach to poles; pole bases; angles 
that do not exceed 8'' x 8'' x 0.75''; steel vangs, steel brackets, 
steel flanges, and steel caps; safety climbing cables; ladders; and 
steel templates.
     Steel Electric Substation Poles, or segments of such 
poles, that meet the American Society of Civil Engineers (ASCE)--
Manuals and Reports on Engineering Practice No. 113. The exclusion 
for steel electric substation poles also encompasses the following 
components thereof: Substation dead end poles; substation bus 
stands; substation mast poles, arms, and cross-arms; steel brackets, 
steel flanges, and steel caps; pole bases; safety climbing cables; 
ladders; and steel templates.
     Steel Electric Distribution Poles, or segments of such 
poles, that meet (1) American Society of Civil Engineers (ASCE)--
Design of Steel Transmission Pole Structures, ASCE/SEI 48, (2) USDA 
RUS bulletin 1724E-204 Guide specification for steel single pole and 
H-frame structures, or (3) ANSI 05.1 height and class requirements 
for steel poles. The exclusion for steel electric distribution poles 
also encompasses the following components thereof: Distribution arms 
and cross-arms; pole bases; angles that do not exceed 8'' x 8'' x 
0.75''; steel vangs, steel brackets, steel flanges, and steel caps; 
safety climbing cables; ladders; and steel templates.
     Steel Traffic Signal Poles, Steel Roadway Lighting 
Poles, Steel Parking Lot Lighting Poles, and Steel Sports Lighting 
Poles, or segments of such poles, that meet (1) the American 
Association of State Highway and Transportation Officials (AASHTO)--
Specifications for Structural Supports for Highway Signs, 
Luminaires, and Traffic Signals, (2) any state or local derivatives 
of the AASHTO highway sign, luminaries, and traffic signals 
requirements, or (3) American National Standard Institute (ANSI) 
C136--American National Standard for Roadway and Area Lighting 
Equipment standards. The exclusion for steel traffic signal poles, 
steel roadway lighting poles, steel parking lot lighting poles, and 
steel sports lighting poles also encompasses the following 
components thereof: Luminaire arms; hand hole rims; hand hole 
covers; base plates that connect to either the shaft or the arms; 
mast arm clamps; mast arm tie rods; transformer base boxes; formed 
full base covers that hide anchor bolts; step lugs; internal cable 
guides; lighting cross arms; lighting service platforms; angles that 
do not exceed 8'' x 8'' x 0.75''; stainless steel hand hole door 
hinges and wind restraints; steel brackets, steel flanges, and steel 
caps; safety climbing cables; ladders; and steel templates.
     Communication Poles, or segments of such poles, that 
meet (1) Telecommunications Industry Association (TIA) ANSI/TIA-222 
Structural Standards for Steel Antenna Towers and Antenna Supporting 
Structures, or (2) American Association of State Highway and 
Transportation Officials (AASHTO)--Specifications for Structural 
Supports for Highway Signs, Luminaires, and Traffic Signals. The 
exclusion for communication poles also encompasses the following 
components thereof: Luminaire arms; hand hole rims; hand hole 
covers; base plate that connects the pole to the foundation or arm 
to the pole; safety climbing cables; ladders; service ground 
platforms; step lugs; pole steps; steel brackets, steel flanges, and 
steel

[[Page 33227]]

caps; angles that do not exceed 8'' x 8'' x 0.75'', coax, and safety 
brackets; subcomponent kits for antenna mounts weighing 80 lbs. or 
less; service platforms; ice bridges; stainless steel hand hole door 
hinges and wind restraints; and steel templates.
     OEM Round or Polygonal Tapered Steel Poles, segments or 
shaft components of such poles, that meet the (1) ASCE 48 or AASHTO, 
(2) ANSI/TIA 222, (3) ANSI 05.1, (4) RUS bulletin 1724E-204, or (5) 
RUS bulletin 1724E-214. The exclusion for OEM round or polygonal 
tapered steel poles also encompasses the following components 
thereof: Subcomponent kits for antenna mounts weighing 80 lbs. or 
less; mounts and platforms; steel brackets, steel flanges, and steel 
caps; angles that do not exceed 8'' x 8'' x 0.75''; bridge kits; 
safety climbing cables; ladders; and steel templates.
    The inclusion or attachment of one or more of the above-
referenced steel poles in a structure containing fabricated 
structural steel (FSS) does not remove the FSS from the scope of the 
investigation. No language included in this exclusion should be read 
or understood to have applicability to any other aspect of this 
scope or to have applicability to or to exclude any product, part, 
or component other than those specifically identified in the 
exclusion.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheadings: 7308.90.3000, 7308.90.6000, and 
7308.90.9590.
    The products subject to the investigation may also enter under 
the following HTSUS subheadings: 7216.91.0010, 7216.91.0090, 
7216.99.0010, 7216.99.0090, 7222.40.6000, 7228.70.6000, 
7301.10.0000, 7301.20.1000, 7301.20.5000, 7308.40.0000, 
7308.90.9530, and 9406.90.0030.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Application of the CVD Law to Imports From China
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Conclusion

[FR Doc. 2019-14870 Filed 7-11-19; 8:45 am]
 BILLING CODE 3510-DS-P