Certain Corrosion-Resistant Steel Products From Taiwan: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order, 43581-43583 [2019-18013]

Download as PDF Federal Register / Vol. 84, No. 162 / Wednesday, August 21, 2019 / Notices Commerce initiated the investigation. However, section 733(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 190 days after the date on which Commerce initiated the investigation if: (A) The petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request.2 On July 24, 2019, the petitioners 3 submitted a timely request that Commerce postpone the preliminary determination in this LTFV investigation.4 The petitioners stated that the purpose of their request is to provide Commerce with adequate time to solicit information from the respondents and to allow Commerce and the petitioners sufficient time to analyze the respondents’ questionnaire responses.5 For the reasons stated above, and because there are no compelling reasons to deny the request, Commerce, in accordance with section 733(c)(1) of the Act and 19 CFR 351.205(e), is postponing the deadline for the preliminary determination by 50 days (i.e., 190 days after the date on which this investigation was initiated). As a result, Commerce will issue its preliminary determination no later than October 24, 2019. Pursuant to section 735(a)(l) of the Act and 19 CFR 351.210(b)(1), the deadline for the final determination will continue to be 75 days after the date of the preliminary determination, unless postponed at a later date. Notification to Interested Parties jspears on DSK3GMQ082PROD with NOTICES This notice is issued and published pursuant to section 733(c)(2) of the Act and 19 CFR 351.205(f)(1). 2 See 19 CFR 351.205(e). petitioners are Cooper Natural Resources, Inc., Elementis Global LLC, and Searles Valley Minerals. 4 See Petitioners’ Letter, ‘‘Sodium Sulfate Anhydrous from Canada: Petitioners’ Request to Postpone the Antidumping Investigation Preliminary Determination,’’ dated July 24, 2019. 5 Id. 3 The VerDate Sep<11>2014 18:13 Aug 20, 2019 Jkt 247001 43581 Dated: August 15, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. and the U.S. International Trade Commission’s (ITC) finding of material injury,3 Commerce issued an AD order on imports of CORE from Taiwan.4 [FR Doc. 2019–18024 Filed 8–20–19; 8:45 am] Scope of the Order The products covered by the Order are certain flat-rolled steel products, either clad, plated, or coated with corrosion-resistant metals (CORE). For a full description of the scope of the Order, see the ‘‘Scope of the Order,’’ in the Appendix to this notice. BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–583–856] Certain Corrosion-Resistant Steel Products From Taiwan: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: Based on available information, the Department of Commerce (Commerce) is self-initiating a country-wide anti-circumvention inquiry to determine whether imports of corrosion-resistant steel products (CORE), completed in Malaysia using hot-rolled steel (HRS) and cold-rolled steel (CRS) flat products manufactured in Taiwan, are circumventing the antidumping duty (AD) order on CORE from Taiwan. DATES: Applicable August 21, 2019. FOR FURTHER INFORMATION CONTACT: Brendan Quinn at (202) 482–5848, AD/ CVD Operations, Office III or Barb Rawdon at (202) 482–0474, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: AGENCY: Background On June 3, 2015, AK Steel Corporation, ArcelorMittal USA LLC, California Steel Industries, Inc., Nucor Corporation, Steel Dynamics, Inc., and United States Steel Corporation filed petitions seeking imposition of antidumping and countervailing duties on imports of CORE from China, India, Italy, the Republic of Korea, and Taiwan.1 Following Commerce’s affirmative determination of dumping,2 1 See Certain Corrosion-Resistant Steel Products from Italy, India, the People’s Republic of China, the Republic of Korea, and Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR 37228 (June 30, 2015); Certain Corrosion-Resistant Steel Products from the People’s Republic of China, India, Italy, the Republic of Korea, and Taiwan: Initiation of Countervailing Duty Investigations, 80 FR 37223 (June 30, 2015). 2 See Certain Corrosion-Resistant Steel Products from Taiwan: Final Determination of Sales at Less Than Fair Value and Final Affirmative PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 Prior Circumvention Finding On August 2, 2018, pursuant to section 781(b) of the Act and 19 CFR 351.225(h), Commerce initiated an anticircumvention inquiry on the Order to determine whether certain imports of CORE, completed in the Socialist Republic of Vietnam (Vietnam) using HRS and CRS flat products manufactured in Taiwan, were circumventing the Order.5 Following the completion of the inquiry, on July 10, 2019, Commerce determined that imports of CORE completed in Vietnam using HRS or CRS manufactured in Taiwan were circumventing the Order and, therefore determined that such imports fall within the scope of the Order.6 Merchandise Subject to the AntiCircumvention Inquiry This anti-circumvention inquiry covers CORE completed in Malaysia using HRS or CRS manufactured in Taiwan and subsequently exported from Malaysia to the United States. Initiation of Anti-Circumvention Inquiry Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act) provides Determination of Critical Circumstances, in Part, 81 FR 35313 (June 2, 2016). 3 See Certain Corrosion-Resistant Steel Products from China, India, Italy, Korea, and Taiwan; Determinations, 81 FR 47177 (July 20, 2016); see also Certain Corrosion-Resistant Steel Products from China, India, Italy, Korea, and Taiwan, Inv. Nos. 701–TA–534–537 and 731–TA–1274–1278, USITC Pub. 4620 (July 2016) (Final) (hereinafter, USITC CORE Report). 4 See Certain Corrosion-Resistant Steel Products from India, Italy, the People’s Republic of China, the Republic of Korea and Taiwan: Amended Final Affirmative Antidumping Determination for India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 2016) (Order). 5 See Certain Corrosion-Resistant Steel Products from the Republic of Korea and Taiwan: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 FR 37785 (August 2, 2018) (Taiwan/Vietnam CORE Initiation). 6 See Certain Corrosion-Resistant Steel Products from Taiwan: Affirmative Preliminary Determination of Anti-Circumvention Inquiry on the Antidumping Duty Order, 84 FR 32864 (July 10, 2019) and accompanying Preliminary Decision Memorandum. E:\FR\FM\21AUN1.SGM 21AUN1 jspears on DSK3GMQ082PROD with NOTICES 43582 Federal Register / Vol. 84, No. 162 / Wednesday, August 21, 2019 / Notices 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 anticircumvention inquiries, 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. In determining whether or not the process of assembly or completion in a third country is minor or insignificant under section 781(b)(1)(C) of the Act, section 781(b)(2) of the Act directs Commerce to consider: (A) The level of investment in the foreign country, (B) the level of research and development in the foreign country, (C) the nature of the production process in the foreign country, (D) the extent of production facilities in the foreign country, and (E) whether or not the value of processing performed in the foreign country represents a small proportion of the value of the merchandise imported into the United States. However, no single factor, by itself, controls Commerce’s determination of whether the process of assembly or completion in a third country is minor or insignificant.7 Accordingly, it is Commerce’s practice to evaluate each of these five factors as they exist in the third country, depending on the totality of the circumstances of the particular anticircumvention inquiry.8 7 See Statement of Administrative Action accompanying the Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103–316 (1994) at 893. 8 See Uncovered Innerspring Units from the People’s Republic of China: Final Affirmative Determination of Circumvention of the Antidumping Duty Order, 83 FR 65626 (December VerDate Sep<11>2014 18:13 Aug 20, 2019 Jkt 247001 Furthermore, section 781(b)(3) of the Act sets forth additional factors to consider in determining whether to include merchandise assembled or completed in a third country within the scope of an antidumping and/or countervailing duty order. Specifically, Commerce shall take into account such factors as: (A) The pattern of trade, including sourcing patterns; (B) whether the manufacturer or exporter of the merchandise is affiliated with the person who, in the third country, uses the merchandise to complete or assemble the merchandise which is subsequently imported into the United States; and (C) whether imports of the merchandise into the third country have increased after the initiation of the investigation that resulted in the issuance of such order or finding. We have analyzed the criteria above and from available information we determine, pursuant to section 781(b) of the Act and 19 CFR 351.225(b) and (h), that initiation of an anti-circumvention inquiry is warranted to determine whether certain imports of CORE, completed in Malaysia using HRS and CRS flat products manufactured in Taiwan, are circumventing the Order. For a full discussion of the basis for our decision to initiate this anticircumvention inquiry, see the AntiCircumvention Initiation Memo.9 As explained in the Anti-Circumvention Initiation Memo, the available information warrants initiating this anticircumvention inquiry on a countrywide basis. Commerce has taken this approach in a prior anti-circumvention inquiry, where the facts warranted initiation on a country-wide basis.10 Consistent with the approach in the prior anti-circumvention inquiry that 21, 2018), and accompanying Issues and Decision Memorandum at 4. 9 See Memorandum, ‘‘Certain Corrosion-Resistant Steel Products from Taiwan: Initiation of AntiCircumvention Inquiry on the Antidumping Duty Order’’ (Anti-Circumvention Initiation Memo). This memo is a public document dated concurrently with, and hereby adopted by, this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Department of Commerce building. 10 See Taiwan/Vietnam CORE Initiation; see also Carbon Steel Butt-Weld Pipe Fittings from the People’s Republic of China: Initiation of AntiCircumvention Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 25, 2017) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted); Certain Corrosion-Resistant Steel Products from the People’s Republic of China: Initiation of AntiCircumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at initiation that Commerce would evaluate the extent to which a country-wide finding applicable to all exports might be warranted). PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 was initiated on a country-wide basis, Commerce intends to issue questionnaires to solicit information from producers and exporters in Malaysia 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 the Act, which may include adverse inferences, pursuant to section 776(b) of the Act. Notification to Interested Parties In accordance with 19 CFR 351.225(b), Commerce determines that available information warrants initiating an anti-circumvention inquiry to determine whether certain imports of CORE, completed in Malaysia using HRS and CRS flat products manufactured in Taiwan, are circumventing the Order. Accordingly, Commerce hereby notifies all parties on Commerce’s scope service list of the initiation of 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(b), we have included a description of the product that is the subject of this anti-circumvention inquiry (i.e., CORE completed in Malaysia using HRS and CRS flat products manufactured in Taiwan), and an explanation of the reasons for Commerce’s decision to initiate this anti-circumvention inquiry as provided above. Commerce will establish a schedule for questionnaires and comments on the issues in this inquiry. In accordance with 19 CFR 351.225(l)(2), if Commerce issues preliminary affirmative determinations, we will then instruct U.S. Customs and Border Protection to suspend liquidation and require a cash deposit of the estimated antidumping duty, 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 this inquiry. Commerce intends to issue its final determination within 300 days of the date of publication of this initiation, in accordance with section 781(f) of the Act and 19 CFR 351.225(f)(5). This notice is published in accordance with section 781(b) of the Act and 19 CFR 351.225(f). E:\FR\FM\21AUN1.SGM 21AUN1 Federal Register / Vol. 84, No. 162 / Wednesday, August 21, 2019 / Notices Dated: August 12, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix jspears on DSK3GMQ082PROD with NOTICES Scope of the Order The products covered by this Order are certain flat-rolled steel products, either clad, plated, or coated with corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or not corrugated or painted, varnished, laminated, or coated with plastics or other non-metallic substances in addition to the metallic coating. The products covered include coils that have a width of 12.7 mm or greater, regardless of form of coil (e.g., in successively superimposed layers, spirally oscillating, etc.). The products covered also include products not in coils (e.g., in straight lengths) of a thickness less than 4.75 mm and a width that is 12.7 mm or greater and that measures at least 10 times the thickness. The products covered also include products not in coils (e.g., in straight lengths) of a thickness of 4.75 mm or more and a width exceeding 150 mm and measuring at least twice the thickness. The products described above may be rectangular, square, circular, or other shape and include products of either rectangular or non-rectangular cross-section where such cross-section is achieved subsequent to the rolling process, i.e., products which have been ‘‘worked after rolling’’ (e.g., products which have been beveled or rounded at the edges). For purposes of the width and thickness requirements referenced above: (1) Where the nominal and actual measurements vary, a product is within the scope if application of either the nominal or actual measurement would place it within the scope based on the definitions set forth above, and (2) where the width and thickness vary for a specific product (e.g., the thickness of certain products with non-rectangular crosssection, the width of certain products with nonrectangular shape, etc.), the measurement at its greatest width or thickness applies. Steel products included in the scope of this Order 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 VerDate Sep<11>2014 18:13 Aug 20, 2019 Jkt 247001 Unless specifically excluded, products are included in this scope regardless of levels of boron and titanium. For example, specifically included in this scope are vacuum degassed, fully stabilized (commonly referred to as interstitial-free (IF)) steels and high strength low alloy (HSLA) steels. IF steels are recognized as low carbon steels with micro-alloying levels of elements such as titanium and/or niobium added to stabilize carbon and nitrogen elements. HSLA steels are recognized as steels with microalloying levels of elements such as chromium, copper, niobium, titanium, vanadium, and molybdenum. Furthermore, this scope also includes Advanced High Strength Steels (AHSS) and Ultra High Strength Steels (UHSS), both of which are considered high tensile strength and high elongation steels. Subject merchandise also includes corrosionresistant steel that has been further processed in a third country, including but not limited to annealing, tempering, painting, varnishing, trimming, cutting, punching and/or slitting or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope corrosion resistant steel. All products that meet the written physical description, and in which the chemistry quantities do not exceed any one of the noted element levels listed above, are within the scope of this Order unless specifically excluded. The following products are outside of and/or specifically excluded from the scope of this Order: • Flat-rolled steel products either plated or coated with tin, lead, chromium, chromium oxides, both tin and lead (terne plate), or both chromium and chromium oxides (tin free steel), whether or not painted, varnished or coated with plastics or other non-metallic substances in addition to the metallic coating; • Clad products in straight lengths of 4.7625 mm or more in composite thickness and of a width which exceeds 150 mm and measures at least twice the thickness; and • Certain clad stainless flat-rolled products, which are three-layered corrosionresistant flat-rolled steel products less than 4.75 mm in composite thickness that consist of a flat-rolled steel product clad on both sides with stainless steel in a 20%-60%-20% ratio. The products subject to the Order are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 7210.49.0091, 7210.49.0095, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.6000, 7210.90.9000, 7212.20.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000, 7212.50.0000, and 7212.60.0000. The products subject to the Order may also enter under the following HTSUS item numbers: 7210.90.1000, 7215.90.1000, 7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090, 7226.99.0110, 7226.99.0130, 7226.99.0180, PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 43583 7228.60.6000, 7228.60.8000, and 7229.90.1000. The HTSUS subheadings above are provided for convenience and customs purposes only. The written description of the scope of the Order is dispositive. [FR Doc. 2019–18013 Filed 8–20–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–489–825] Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Turkey: Preliminary Results of Countervailing Duty Administrative Review; 2017 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that Ozdemir Boru Profil San. Ve Tic. Ltd. Sti. (Ozdemir) received countervailable subsidies for the production and export of heavy walled rectangular welded carbon steel pipes and tubes (HWR pipes and tubes) from the Republic of Turkey (Turkey) during the period of review January 1, 2017 through December 31, 2017. Interested parties are invited to comment on these preliminary results. DATES: Applicable August 21, 2019. FOR FURTHER INFORMATION CONTACT: Janae Martin or Jaron Moore, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0238 or (202) 482–3640, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On November 15, 2018, Commerce published a notice of initiation of an administrative review of the countervailing duty (CVD) order on HWR pipes and tubes from Turkey.1 Commerce exercised its discretion to toll all deadlines affected by the partial federal government closure from December 22, 2018 through the resumption of operations on January 29, 2019.2 On June 19, 2019, Commerce 1 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 83 FR 57411 (November 15, 2018). 2 See Memorandum to the Record from Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations for Enforcement and Compliance, ‘‘Deadlines E:\FR\FM\21AUN1.SGM Continued 21AUN1

Agencies

[Federal Register Volume 84, Number 162 (Wednesday, August 21, 2019)]
[Notices]
[Pages 43581-43583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18013]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-856]


Certain Corrosion-Resistant Steel Products From Taiwan: 
Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order

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

SUMMARY: Based on available information, the Department of Commerce 
(Commerce) is self-initiating a country-wide anti-circumvention inquiry 
to determine whether imports of corrosion-resistant steel products 
(CORE), completed in Malaysia using hot-rolled steel (HRS) and cold-
rolled steel (CRS) flat products manufactured in Taiwan, are 
circumventing the antidumping duty (AD) order on CORE from Taiwan.

DATES: Applicable August 21, 2019.

FOR FURTHER INFORMATION CONTACT: Brendan Quinn at (202) 482-5848, AD/
CVD Operations, Office III or Barb Rawdon at (202) 482-0474, Office of 
Policy, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On June 3, 2015, AK Steel Corporation, ArcelorMittal USA LLC, 
California Steel Industries, Inc., Nucor Corporation, Steel Dynamics, 
Inc., and United States Steel Corporation filed petitions seeking 
imposition of antidumping and countervailing duties on imports of CORE 
from China, India, Italy, the Republic of Korea, and Taiwan.\1\ 
Following Commerce's affirmative determination of dumping,\2\ and the 
U.S. International Trade Commission's (ITC) finding of material 
injury,\3\ Commerce issued an AD order on imports of CORE from 
Taiwan.\4\
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    \1\ See Certain Corrosion-Resistant Steel Products from Italy, 
India, the People's Republic of China, the Republic of Korea, and 
Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR 
37228 (June 30, 2015); Certain Corrosion-Resistant Steel Products 
from the People's Republic of China, India, Italy, the Republic of 
Korea, and Taiwan: Initiation of Countervailing Duty Investigations, 
80 FR 37223 (June 30, 2015).
    \2\ See Certain Corrosion-Resistant Steel Products from Taiwan: 
Final Determination of Sales at Less Than Fair Value and Final 
Affirmative Determination of Critical Circumstances, in Part, 81 FR 
35313 (June 2, 2016).
    \3\ See Certain Corrosion-Resistant Steel Products from China, 
India, Italy, Korea, and Taiwan; Determinations, 81 FR 47177 (July 
20, 2016); see also Certain Corrosion-Resistant Steel Products from 
China, India, Italy, Korea, and Taiwan, Inv. Nos. 701-TA-534-537 and 
731-TA-1274-1278, USITC Pub. 4620 (July 2016) (Final) (hereinafter, 
USITC CORE Report).
    \4\ See Certain Corrosion-Resistant Steel Products from India, 
Italy, the People's Republic of China, the Republic of Korea and 
Taiwan: Amended Final Affirmative Antidumping Determination for 
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 
2016) (Order).
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Scope of the Order

    The products covered by the Order are certain flat-rolled steel 
products, either clad, plated, or coated with corrosion-resistant 
metals (CORE). For a full description of the scope of the Order, see 
the ``Scope of the Order,'' in the Appendix to this notice.

Prior Circumvention Finding

    On August 2, 2018, pursuant to section 781(b) of the Act and 19 CFR 
351.225(h), Commerce initiated an anti-circumvention inquiry on the 
Order to determine whether certain imports of CORE, completed in the 
Socialist Republic of Vietnam (Vietnam) using HRS and CRS flat products 
manufactured in Taiwan, were circumventing the Order.\5\ Following the 
completion of the inquiry, on July 10, 2019, Commerce determined that 
imports of CORE completed in Vietnam using HRS or CRS manufactured in 
Taiwan were circumventing the Order and, therefore determined that such 
imports fall within the scope of the Order.\6\
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    \5\ See Certain Corrosion-Resistant Steel Products from the 
Republic of Korea and Taiwan: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 
FR 37785 (August 2, 2018) (Taiwan/Vietnam CORE Initiation).
    \6\ See Certain Corrosion-Resistant Steel Products from Taiwan: 
Affirmative Preliminary Determination of Anti-Circumvention Inquiry 
on the Antidumping Duty Order, 84 FR 32864 (July 10, 2019) and 
accompanying Preliminary Decision Memorandum.
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Merchandise Subject to the Anti-Circumvention Inquiry

    This anti-circumvention inquiry covers CORE completed in Malaysia 
using HRS or CRS manufactured in Taiwan and subsequently exported from 
Malaysia to the United States.

Initiation of Anti-Circumvention Inquiry

    Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act) 
provides

[[Page 43582]]

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 anti-circumvention inquiries, 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.
    In determining whether or not the process of assembly or completion 
in a third country is minor or insignificant under section 781(b)(1)(C) 
of the Act, section 781(b)(2) of the Act directs Commerce to consider: 
(A) The level of investment in the foreign country, (B) the level of 
research and development in the foreign country, (C) the nature of the 
production process in the foreign country, (D) the extent of production 
facilities in the foreign country, and (E) whether or not the value of 
processing performed in the foreign country represents a small 
proportion of the value of the merchandise imported into the United 
States. However, no single factor, by itself, controls Commerce's 
determination of whether the process of assembly or completion in a 
third country is minor or insignificant.\7\ Accordingly, it is 
Commerce's practice to evaluate each of these five factors as they 
exist in the third country, depending on the totality of the 
circumstances of the particular anti-circumvention inquiry.\8\
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    \7\ See Statement of Administrative Action accompanying the 
Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103-316 (1994) at 
893.
    \8\ See Uncovered Innerspring Units from the People's Republic 
of China: Final Affirmative Determination of Circumvention of the 
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and 
accompanying Issues and Decision Memorandum at 4.
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    Furthermore, section 781(b)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in a third country within the scope of an 
antidumping and/or countervailing duty order. Specifically, Commerce 
shall take into account such factors as: (A) The pattern of trade, 
including sourcing patterns; (B) whether the manufacturer or exporter 
of the merchandise is affiliated with the person who, in the third 
country, uses the merchandise to complete or assemble the merchandise 
which is subsequently imported into the United States; and (C) whether 
imports of the merchandise into the third country have increased after 
the initiation of the investigation that resulted in the issuance of 
such order or finding.
    We have analyzed the criteria above and from available information 
we determine, pursuant to section 781(b) of the Act and 19 CFR 
351.225(b) and (h), that initiation of an anti-circumvention inquiry is 
warranted to determine whether certain imports of CORE, completed in 
Malaysia using HRS and CRS flat products manufactured in Taiwan, are 
circumventing the Order. For a full discussion of the basis for our 
decision to initiate this anti-circumvention inquiry, see the Anti-
Circumvention Initiation Memo.\9\ As explained in the Anti-
Circumvention Initiation Memo, the available information warrants 
initiating this anti-circumvention inquiry on a country-wide basis. 
Commerce has taken this approach in a prior anti-circumvention inquiry, 
where the facts warranted initiation on a country-wide basis.\10\
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    \9\ See Memorandum, ``Certain Corrosion-Resistant Steel Products 
from Taiwan: Initiation of Anti-Circumvention Inquiry on the 
Antidumping Duty Order'' (Anti-Circumvention Initiation Memo). This 
memo is a public document dated concurrently with, and hereby 
adopted by, this notice and on file electronically via ACCESS. 
Access to documents filed via ACCESS is also available in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building.
    \10\ See Taiwan/Vietnam CORE Initiation; see also Carbon Steel 
Butt-Weld Pipe Fittings from the People's Republic of China: 
Initiation of Anti-Circumvention Inquiry on the Antidumping Duty 
Order, 82 FR 40556, 40560 (August 25, 2017) (stating at initiation 
that Commerce would evaluate the extent to which a country-wide 
finding applicable to all exports might be warranted); Certain 
Corrosion-Resistant Steel Products from the People's Republic of 
China: Initiation of Anti-Circumvention Inquiries on the Antidumping 
Duty and Countervailing Duty Orders, 81 FR 79454, 79458 (November 
14, 2016) (stating at initiation that Commerce would evaluate the 
extent to which a country-wide finding applicable to all exports 
might be warranted).
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    Consistent with the approach in the prior anti-circumvention 
inquiry that was initiated on a country-wide basis, Commerce intends to 
issue questionnaires to solicit information from producers and 
exporters in Malaysia 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 the Act, which may include 
adverse inferences, pursuant to section 776(b) of the Act.

Notification to Interested Parties

    In accordance with 19 CFR 351.225(b), Commerce determines that 
available information warrants initiating an anti-circumvention inquiry 
to determine whether certain imports of CORE, completed in Malaysia 
using HRS and CRS flat products manufactured in Taiwan, are 
circumventing the Order. Accordingly, Commerce hereby notifies all 
parties on Commerce's scope service list of the initiation of 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(b), we have included a description of the product that is 
the subject of this anti-circumvention inquiry (i.e., CORE completed in 
Malaysia using HRS and CRS flat products manufactured in Taiwan), and 
an explanation of the reasons for Commerce's decision to initiate this 
anti-circumvention inquiry as provided above. Commerce will establish a 
schedule for questionnaires and comments on the issues in this inquiry.
    In accordance with 19 CFR 351.225(l)(2), if Commerce issues 
preliminary affirmative determinations, we will then instruct U.S. 
Customs and Border Protection to suspend liquidation and require a cash 
deposit of the estimated antidumping duty, 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 this inquiry. Commerce intends to issue its final 
determination within 300 days of the date of publication of this 
initiation, in accordance with section 781(f) of the Act and 19 CFR 
351.225(f)(5).
    This notice is published in accordance with section 781(b) of the 
Act and 19 CFR 351.225(f).


[[Page 43583]]


    Dated: August 12, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The products covered by this Order are certain flat-rolled steel 
products, either clad, plated, or coated with corrosion-resistant 
metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-
based alloys, whether or not corrugated or painted, varnished, 
laminated, or coated with plastics or other non-metallic substances 
in addition to the metallic coating. The products covered include 
coils that have a width of 12.7 mm or greater, regardless of form of 
coil (e.g., in successively superimposed layers, spirally 
oscillating, etc.). The products covered also include products not 
in coils (e.g., in straight lengths) of a thickness less than 4.75 
mm and a width that is 12.7 mm or greater and that measures at least 
10 times the thickness. The products covered also include products 
not in coils (e.g., in straight lengths) of a thickness of 4.75 mm 
or more and a width exceeding 150 mm and measuring at least twice 
the thickness. The products described above may be rectangular, 
square, circular, or other shape and include products of either 
rectangular or non-rectangular cross-section where such cross-
section is achieved subsequent to the rolling process, i.e., 
products which have been ``worked after rolling'' (e.g., products 
which have been beveled or rounded at the edges). For purposes of 
the width and thickness requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above, and
    (2) where the width and thickness vary for a specific product 
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with nonrectangular shape, 
etc.), the measurement at its greatest width or thickness applies.
    Steel products included in the scope of this Order are products 
in which: (1) Iron predominates, by weight, over each of the other 
contained elements; (2) the carbon content is 2 percent or less, by 
weight; and (3) none of the elements listed below exceeds the 
quantity, by weight, respectively indicated:
 2.50 percent of manganese, or
 3.30 percent of silicon, or
 1.50 percent of copper, or
 1.50 percent of aluminum, or
 1.25 percent of chromium, or
 0.30 percent of cobalt, or
 0.40 percent of lead, or
 2.00 percent of nickel, or
 0.30 percent of tungsten (also called wolfram), or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), or
 0.30 percent of vanadium, or
 0.30 percent of zirconium
    Unless specifically excluded, products are included in this 
scope regardless of levels of boron and titanium.
    For example, specifically included in this scope are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-
free (IF)) steels and high strength low alloy (HSLA) steels. IF 
steels are recognized as low carbon steels with micro-alloying 
levels of elements such as titanium and/or niobium added to 
stabilize carbon and nitrogen elements. HSLA steels are recognized 
as steels with microalloying levels of elements such as chromium, 
copper, niobium, titanium, vanadium, and molybdenum.
    Furthermore, this scope also includes Advanced High Strength 
Steels (AHSS) and Ultra High Strength Steels (UHSS), both of which 
are considered high tensile strength and high elongation steels. 
Subject merchandise also includes corrosion-resistant steel that has 
been further processed in a third country, including but not limited 
to annealing, tempering, painting, varnishing, trimming, cutting, 
punching and/or slitting or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in the country of manufacture of the in-scope corrosion 
resistant steel.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this Order 
unless specifically excluded. The following products are outside of 
and/or specifically excluded from the scope of this Order:
     Flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (terne 
plate), or both chromium and chromium oxides (tin free steel), 
whether or not painted, varnished or coated with plastics or other 
non-metallic substances in addition to the metallic coating;
     Clad products in straight lengths of 4.7625 mm or more 
in composite thickness and of a width which exceeds 150 mm and 
measures at least twice the thickness; and
     Certain clad stainless flat-rolled products, which are 
three-layered corrosion-resistant flat-rolled steel products less 
than 4.75 mm in composite thickness that consist of a flat-rolled 
steel product clad on both sides with stainless steel in a 20%-60%-
20% ratio.
    The products subject to the Order are currently classified in 
the Harmonized Tariff Schedule of the United States (HTSUS) under 
item numbers: 7210.30.0030, 7210.30.0060, 7210.41.0000, 
7210.49.0030, 7210.49.0091, 7210.49.0095, 7210.61.0000, 
7210.69.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090, 
7210.90.6000, 7210.90.9000, 7212.20.0000, 7212.30.1030, 
7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, and 7212.60.0000.
    The products subject to the Order may also enter under the 
following HTSUS item numbers: 7210.90.1000, 7215.90.1000, 
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 
7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090, 
7226.99.0110, 7226.99.0130, 7226.99.0180, 7228.60.6000, 
7228.60.8000, and 7229.90.1000.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
Order is dispositive.

[FR Doc. 2019-18013 Filed 8-20-19; 8:45 am]
BILLING CODE 3510-DS-P