Certain Corrosion-Resistant Steel Products From Taiwan: Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order, 43581-43583 [2019-18013]
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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
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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
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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.
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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
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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).
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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).
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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
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18:13 Aug 20, 2019
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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,
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Fmt 4703
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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
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]]>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
