Stainless Steel Sheet and Strip From the People's Republic of China: Initiation of Anti-Circumvention and Scope Inquiries on the Antidumping Duty and Countervailing Duty Orders, 29401-29403 [2020-10490]

Download as PDF Federal Register / Vol. 85, No. 95 / Friday, May 15, 2020 / Notices and to liquidate entries produced and exported by C ¸ olakog˘lu without regard to antidumping duties. Notification to Interested Parties This notice is issued and published in accordance with sections 516A(c)(1) and (e), 735(d), 736(a), 751(a) and 777(i) of the Act. Dated: May 11, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Scope of the Order The products covered by the Orders are stainless sheet and strip, whether in coils or straight lengths. For a full description of the scope of the Orders, see the ‘‘Scope of the Orders,’’ in the Appendix to this notice. [FR Doc. 2020–10491 Filed 5–14–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–042, C–570–043] Stainless Steel Sheet and Strip From the People’s Republic of China: Initiation of Anti-Circumvention and Scope Inquiries on the Antidumping Duty and Countervailing Duty Orders 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 stainless steel sheet and strip (stainless sheet and strip), completed in Vietnam using certain stainless steel flat-rolled inputs manufactured in the People’s Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on stainless sheet and strip from China (collectively, the Orders). Commerce is also self-initiating a scope inquiry to determine whether stainless sheet and strip that is produced in China and undergoes further processing in Vietnam before being exported to the United States is subject to the Orders. DATES: Applicable May 15, 2020. FOR FURTHER INFORMATION CONTACT: Blaine Wiltse at (202) 482–6345, AD/ CVD Operations, 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: jbell on DSKJLSW7X2PROD with NOTICES AGENCY: Background On February 12, 2016, AK Steel Corporation, Allegheny Ludlum, LLC D/ B/A ATI Flat Rolled Products, North American Stainless, and Outokumpu VerDate Sep<11>2014 17:09 May 14, 2020 Jkt 250001 Stainless USA, LLC filed petitions seeking the imposition of antidumping and countervailing duties on imports of stainless sheet and strip from China.1 Following Commerce’s affirmative determinations of dumping and countervailable subsidies,2 and the U.S. International Trade Commission’s (USITC) finding of material injury,3 Commerce issued AD and CVD orders on imports of stainless sheet and strip from China.4 Merchandise Subject to the AntiCircumvention Inquiry The anti-circumvention inquiry covers stainless sheet and strip completed in Vietnam using certain non-subject stainless steel flat-rolled inputs of Chinese-origin that is subsequently exported from Vietnam to the United States. Initiation of Anti-Circumvention Inquiry Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act), provides that Commerce may find circumvention of an AD or CVD order when merchandise of the same class or kind subject to the order is completed or assembled in a foreign country other than the country to which the order applies. In conducting anticircumvention inquiries, under section 781(b)(1) of the Act, Commerce relies on 1 See Stainless Steel Sheet and Strip from the People’s Republic of China: Initiation of Less-ThanFair-Value Investigation, 81 FR 12711 (March 10, 2016); see also Stainless Steel Sheet and Strip from the People’s Republic of China: Initiation of Countervailing Duty Investigation, 81 FR 13322 (March 14, 2016). 2 See Antidumping Duty Investigation of Stainless Steel Sheet and Strip from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, 82 FR 9716 (February 8, 2017); see also Countervailing Duty Investigation of Stainless Steel Sheet and Strip from the People’s Republic of China: Final Affirmative Determination, and Final Affirmative Critical Circumstances Determination, in Part, 82 FR 9714 (February 8, 2017). 3 See Stainless Steel Sheet and Strip from China; Determinations, 82 FR 15716 (March 30, 2017); see also Stainless Steel Sheet and Strip from China, Inv. Nos. 791–TA–557 and 731–TA–1312, USITC Pub. 4676 (March 2017) (Final). 4 See Stainless Steel Sheet and Strip from the People’s Republic of China: Antidumping Duty Order, 82 FR 16160 (April 3, 2017) (AD Order); see also Stainless Steel Sheet and Strip from the People’s Republic of China: Countervailing Duty Order, 82 FR 16166 (April 3, 2017) (CVD Order) (collectively, Orders). PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 29401 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.5 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.6 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 5 See Statement of Administrative Action accompanying the Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103–316 (1994) at 893. 6 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. E:\FR\FM\15MYN1.SGM 15MYN1 29402 Federal Register / Vol. 85, No. 95 / Friday, May 15, 2020 / Notices 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 stainless sheet and strip, completed in Vietnam using certain stainless steel flat-rolled inputs manufactured in China, are circumventing the Orders. For a full discussion of the basis for our decision to initiate this anti-circumvention inquiry, see the Initiation Memo.7 As explained in the Initiation Memo, the available information supports initiating this anti-circumvention inquiry on a country-wide basis. Commerce has taken this approach in prior anticircumvention inquiries, where the facts supported initiation on a country-wide basis.8 Consistent with the approach in the prior anti-circumvention inquiries that were initiated on a country-wide basis, Commerce intends to issue questionnaires to solicit information from producers and exporters in Vietnam concerning their shipments of stainless sheet and strip to the United States and the origin of any imported jbell on DSKJLSW7X2PROD with NOTICES 7 See Memorandum, ‘‘Stainless Steel Sheet and Strip from the People’s Republic of China: Initiation of Anti-Circumvention and Scope Inquiries on the Antidumping and Countervailing Duty Orders’’ (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. 8 See, e.g., Corrosion-Resistant Steel Products from the People’s Republic of China: Initiation of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 84 FR 43585 (August 21, 2019); see also 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). VerDate Sep<11>2014 17:09 May 14, 2020 Jkt 250001 stainless steel flat-rolled inputs being processed into stainless sheet and strip. 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. Merchandise Subject to the Scope Inquiry The scope inquiry covers stainless sheet and strip of Chinese-origin that has undergone further processing in Vietnam (including but not limited to cold-rolling, annealing, tempering, polishing, aluminizing, coating, painting, varnishing, trimming, cutting, punching, and/or slitting, or any other processing that would not otherwise remove the merchandise from the scope of the Orders) that is subsequently exported to the United States. There is evidence of (a) possible circumvention of the Orders pursuant to section 781(b) of the Act through the completion of stainless sheet and strip in Vietnam using inputs from China, and (b) third-country processing in Vietnam of stainless sheet and strip from China that is subsequently exported to the United States. Furthermore, the scope language states that stainless sheet and strip is subject to the Orders even if it has undergone processing that would not otherwise remove the merchandise from the scope of the Orders if performed in the country of manufacture of the stainless sheet and strip. Accordingly, the initiation of a scope inquiry is warranted to determine whether stainless sheet and strip produced in China that undergoes processing in Vietnam is subject to the Orders. For a discussion of the basis for our decision to initiate this scope inquiry, see the Initiation Memo. Notification to Interested Parties In accordance with section 781(b) of the Act and 19 CFR 351.225(b) and (h), Commerce determines that available information supports initiating anticircumvention and scope inquiries to determine whether certain imports of stainless sheet and strip are circumventing or subject to the Orders. Accordingly, Commerce hereby notifies all parties on Commerce’s scope service list of the initiation of anticircumvention and scope 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 products that are the PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 subject of these inquiries, and an explanation of the reasons for Commerce’s decision to initiate these inquiries as provided above and in the accompanying Initiation Memo. Commerce will establish a schedule for questionnaires and comments on the issues in these inquiries. 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 and countervailing duties, at the applicable rate, for each unliquidated entry of the merchandise at issue, entered or withdrawn from warehouse for consumption on or after the date of initiation of these inquiries. Moreover, in the event we issue preliminary affirmative determinations of circumvention, pursuant to section 781(b) of the act (Merchandise Completed or Assembled in Other Foreign Countries), we intend to notify the ITC, in accordance with section 781(b)(1) of the Act and 19 CFR 351.225(f)(7)(i)(B), if applicable. Commerce will, following consultation with interested parties, establish a schedule for questionnaires and comments on the issues. In accordance with section 781(f) of the Act and 19 CFR 351.225(f)(5), Commerce intends to issue its final scope and circumvention determinations within 120 days and 300 days, respectively, of the date of publication of this initiation. This notice is published in accordance with section 781(b) of the Act and 19 CFR 351.225(f). Dated: May 11, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Orders The merchandise covered by the Orders is stainless sheet and strip, whether in coils or straight lengths. Stainless steel is an alloy steel containing, by weight, 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements. The subject sheet and strip is a flat-rolled product with a width that is greater than 9.5 mm and with a thickness of 0.3048 mm and greater but less than 4.75 mm, and that is annealed or otherwise heat treated, and pickled or otherwise descaled. The subject sheet and strip may also be further processed (e.g., cold-rolled, annealed, tempered, polished, aluminized, coated, painted, varnished, trimmed, cut, punched, or slit, etc.) provided that it maintains the specific dimensions of sheet and strip set forth above following such processing. The products E:\FR\FM\15MYN1.SGM 15MYN1 jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 85, No. 95 / Friday, May 15, 2020 / Notices described include products regardless of 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. All products that meet the written physical description, and in which the chemistry quantities do not exceed any one of the noted element levels listed above, are within the scope of the Orders unless specifically excluded. Subject merchandise includes stainless sheet and strip that has been further processed in a third country, including but not limited to cold-rolling, annealing, tempering, polishing, aluminizing, coating, painting, varnishing, trimming, cutting, punching, and/or slitting, or any other processing that would not otherwise remove the merchandise from the scope of the Orders if performed in the country of manufacture of the stainless sheet and strip. Excluded from the scope of the Orders are the following: (1) Sheet and strip that is not annealed or otherwise heat treated and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled stainless steel products of a thickness of 4.75 mm or more); and (3) flat wire (i.e., cold-rolled sections, with a mill edge, rectangular in shape, of a width of not more than 9.5 mm). The products under the Orders are currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although the HTSUS subheadings are provided for convenience and customs purposes, the written VerDate Sep<11>2014 17:09 May 14, 2020 Jkt 250001 description of the scope of this proceeding is dispositive. [FR Doc. 2020–10490 Filed 5–14–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–918] Steel Wire Garment Hangers From the People’s Republic of China: Preliminary Results of the Antidumping Duty Administrative Review and Rescission of Review in Part; 2018–2019 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminary determines that Shanghai Wells Hanger Co., Ltd. and Hong Kong Wells Ltd. are not eligible for a separate rate, and therefore are part of the China-wide entity. Commerce is also rescinding this administrative review, in part, with respect to eight companies. Interested parties are invited to comment on these preliminary results. DATES: Applicable May 15, 2020. FOR FURTHER INFORMATION CONTACT: Jasun Moy, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–8194. SUPPLEMENTARY INFORMATION: AGENCY: Background On October 1, 2019, Commerce published in the Federal Register a notice of opportunity to request an administrative review of the antidumping duty (AD) order on steel wire garment hangers from the People’s Republic of China (China) for the period of review (POR) October 1, 2018 through September 30, 2019.1 Pursuant to a request from M&B Metal Products Co., Inc. (the petitioner),2 Commerce initiated an administrative review with respect to 11 companies, in accordance with section 751(a) of the Tariff Act of 1930, as amended (the Act).3 1 See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 84 FR 52068 (October 1, 2019). 2 See Petitioner’s Letter, ‘‘Steel Wire Garment Hangers from China: Petitioner’s Request for Administrative Review,’’ dated October 25, 2019 (Petitioner’s Review Request). 3 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 84 FR 67712 (December 11, 2019) (Initiation Notice); see PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 29403 Subsequent to the initiation of the administrative review, the petitioner timely withdrew its request for eight of the companies for which a review had been requested.4 No other party requested an administrative review of these companies. Therefore, this administrative review continues for the two companies remaining under review, Shanghai Wells Hanger Co., Ltd. and Hong Kong Wells Ltd. However, because we have previously found that Shanghai Wells Hanger Co., Ltd. and Hong Kong Wells Ltd. are a single entity (collectively, Shanghai Wells), Shanghai Wells remains the sole respondent in this review.5 On January 2, 2020, Commerce issued the standard non-market economy (NME) questionnaire to Shanghai Wells.6 We confirmed that the questionnaire was delivered to Shanghai Wells and that a company representative received the questionnaire on January 6, 2020.7 Shanghai Wells did not respond to this questionnaire and has filed no submissions on the record of this also Initiation of Antidumping and Countervailing Duty Administrative Reviews, 85 FR 3014 (January 17, 2020) (which corrected the POR for this review). In the Initiation Notice, we inadvertently included a company named ‘‘Hong Kong Ltd.’’ Based on the Petitioner’s Review Request, the correct name of the company is Hong Kong Ltd. (USA). However, this company is an importer, rather than an exporter of subject merchandise, and it is not under review. Therefore, we are correcting the Initiation Notice to clarify that this company is not under review. As such, only 10 companies are under review. 4 See Petitioner’s Letter, ‘‘Administrative Review of Steel Wire Garment Hangers from ChinaPetitioner’s Withdrawal of Review Requests for Specific Companies,’’ dated January 8, 2020 (Petitioner’s Withdrawal Letter). 5 Commerce found that Shanghai Wells Hanger Co., Ltd., Hong Kong Wells Ltd., and Hong Kong Ltd. (USA) are affiliated and that Shanghai Wells Hanger Co. Ltd. and Hong Kong Wells Ltd. are a single entity. Because there were no changes to the facts that supported that decision since that determination was made, we continue to find that these companies are affiliated and that Shanghai Wells Hanger Co. Ltd. and Hong Kong Wells comprise a single entity for this administrative review. See Steel Wire Garment Hangers from the People’s Republic of China: Preliminary Results and Preliminary Rescission, in Part, of the First Antidumping Duty Administrative Review, 75 FR 68758, 68759 (November 9, 2010), unchanged in First Administrative Review of Steel Wire Garment Hangers from the People’s Republic of China: Final Results and Final Partial Rescission of Antidumping Duty Administrative Review, 76 FR 27994, 27995 (May 13, 2011); see also Steel Wire Garment Hangers from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review, 2016–2017, 83 FR 53449 (October 23, 2018). 6 See Commerce’s Letter, ‘‘Antidumping Duty Administrative Review of Steel Wire Garment Hangers from the People’s Republic of China: NonMarket Economy Questionnaire,’’ dated January 2, 2020. 7 See Memorandum, ‘‘Initial Antidumping Duty Questionnaire Delivery Confirmation,’’ dated January 6, 2020. E:\FR\FM\15MYN1.SGM 15MYN1

Agencies

[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Notices]
[Pages 29401-29403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10490]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-042, C-570-043]


Stainless Steel Sheet and Strip From the People's Republic of 
China: Initiation of Anti-Circumvention and Scope Inquiries on the 
Antidumping Duty and Countervailing Duty Orders

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 stainless steel sheet and strip 
(stainless sheet and strip), completed in Vietnam using certain 
stainless steel flat-rolled inputs manufactured in the People's 
Republic of China (China), are circumventing the antidumping duty (AD) 
and countervailing duty (CVD) orders on stainless sheet and strip from 
China (collectively, the Orders). Commerce is also self-initiating a 
scope inquiry to determine whether stainless sheet and strip that is 
produced in China and undergoes further processing in Vietnam before 
being exported to the United States is subject to the Orders.

DATES: Applicable May 15, 2020.

FOR FURTHER INFORMATION CONTACT: Blaine Wiltse at (202) 482-6345, AD/
CVD Operations, 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 February 12, 2016, AK Steel Corporation, Allegheny Ludlum, LLC 
D/B/A ATI Flat Rolled Products, North American Stainless, and Outokumpu 
Stainless USA, LLC filed petitions seeking the imposition of 
antidumping and countervailing duties on imports of stainless sheet and 
strip from China.\1\ Following Commerce's affirmative determinations of 
dumping and countervailable subsidies,\2\ and the U.S. International 
Trade Commission's (USITC) finding of material injury,\3\ Commerce 
issued AD and CVD orders on imports of stainless sheet and strip from 
China.\4\
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    \1\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Initiation of Less-Than-Fair-Value Investigation, 
81 FR 12711 (March 10, 2016); see also Stainless Steel Sheet and 
Strip from the People's Republic of China: Initiation of 
Countervailing Duty Investigation, 81 FR 13322 (March 14, 2016).
    \2\ See Antidumping Duty Investigation of Stainless Steel Sheet 
and Strip from the People's Republic of China: Final Determination 
of Sales at Less Than Fair Value and Final Affirmative Determination 
of Critical Circumstances, 82 FR 9716 (February 8, 2017); see also 
Countervailing Duty Investigation of Stainless Steel Sheet and Strip 
from the People's Republic of China: Final Affirmative 
Determination, and Final Affirmative Critical Circumstances 
Determination, in Part, 82 FR 9714 (February 8, 2017).
    \3\ See Stainless Steel Sheet and Strip from China; 
Determinations, 82 FR 15716 (March 30, 2017); see also Stainless 
Steel Sheet and Strip from China, Inv. Nos. 791-TA-557 and 731-TA-
1312, USITC Pub. 4676 (March 2017) (Final).
    \4\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Antidumping Duty Order, 82 FR 16160 (April 3, 
2017) (AD Order); see also Stainless Steel Sheet and Strip from the 
People's Republic of China: Countervailing Duty Order, 82 FR 16166 
(April 3, 2017) (CVD Order) (collectively, Orders).
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Scope of the Order

    The products covered by the Orders are stainless sheet and strip, 
whether in coils or straight lengths. For a full description of the 
scope of the Orders, see the ``Scope of the Orders,'' in the Appendix 
to this notice.

Merchandise Subject to the Anti-Circumvention Inquiry

    The anti-circumvention inquiry covers stainless sheet and strip 
completed in Vietnam using certain non-subject stainless steel flat-
rolled inputs of Chinese-origin that is subsequently exported from 
Vietnam to the United States.

Initiation of Anti-Circumvention Inquiry

    Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act), 
provides that Commerce may find circumvention of an AD or CVD order 
when merchandise of the same class or kind subject to the order is 
completed or assembled in a foreign country other than the country to 
which the order applies. In conducting 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.\5\ 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.\6\
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    \5\ See Statement of Administrative Action accompanying the 
Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103-316 (1994) at 
893.
    \6\ 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

[[Page 29402]]

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 stainless sheet and 
strip, completed in Vietnam using certain stainless steel flat-rolled 
inputs manufactured in China, are circumventing the Orders. For a full 
discussion of the basis for our decision to initiate this anti-
circumvention inquiry, see the Initiation Memo.\7\ As explained in the 
Initiation Memo, the available information supports initiating this 
anti-circumvention inquiry on a country-wide basis. Commerce has taken 
this approach in prior anti-circumvention inquiries, where the facts 
supported initiation on a country-wide basis.\8\
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    \7\ See Memorandum, ``Stainless Steel Sheet and Strip from the 
People's Republic of China: Initiation of Anti-Circumvention and 
Scope Inquiries on the Antidumping and Countervailing Duty Orders'' 
(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.
    \8\ See, e.g., Corrosion-Resistant Steel Products from the 
People's Republic of China: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 84 
FR 43585 (August 21, 2019); see also 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 
inquiries that were initiated on a country-wide basis, Commerce intends 
to issue questionnaires to solicit information from producers and 
exporters in Vietnam concerning their shipments of stainless sheet and 
strip to the United States and the origin of any imported stainless 
steel flat-rolled inputs being processed into stainless sheet and 
strip. 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.

Merchandise Subject to the Scope Inquiry

    The scope inquiry covers stainless sheet and strip of Chinese-
origin that has undergone further processing in Vietnam (including but 
not limited to cold-rolling, annealing, tempering, polishing, 
aluminizing, coating, painting, varnishing, trimming, cutting, 
punching, and/or slitting, or any other processing that would not 
otherwise remove the merchandise from the scope of the Orders) that is 
subsequently exported to the United States.
    There is evidence of (a) possible circumvention of the Orders 
pursuant to section 781(b) of the Act through the completion of 
stainless sheet and strip in Vietnam using inputs from China, and (b) 
third-country processing in Vietnam of stainless sheet and strip from 
China that is subsequently exported to the United States. Furthermore, 
the scope language states that stainless sheet and strip is subject to 
the Orders even if it has undergone processing that would not otherwise 
remove the merchandise from the scope of the Orders if performed in the 
country of manufacture of the stainless sheet and strip. Accordingly, 
the initiation of a scope inquiry is warranted to determine whether 
stainless sheet and strip produced in China that undergoes processing 
in Vietnam is subject to the Orders. For a discussion of the basis for 
our decision to initiate this scope inquiry, see the Initiation Memo.

Notification to Interested Parties

    In accordance with section 781(b) of the Act and 19 CFR 351.225(b) 
and (h), Commerce determines that available information supports 
initiating anti-circumvention and scope inquiries to determine whether 
certain imports of stainless sheet and strip are circumventing or 
subject to the Orders. Accordingly, Commerce hereby notifies all 
parties on Commerce's scope service list of the initiation of anti-
circumvention and scope 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 products 
that are the subject of these inquiries, and an explanation of the 
reasons for Commerce's decision to initiate these inquiries as provided 
above and in the accompanying Initiation Memo. Commerce will establish 
a schedule for questionnaires and comments on the issues in these 
inquiries.
    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 and countervailing duties, at the 
applicable rate, for each unliquidated entry of the merchandise at 
issue, entered or withdrawn from warehouse for consumption on or after 
the date of initiation of these inquiries. Moreover, in the event we 
issue preliminary affirmative determinations of circumvention, pursuant 
to section 781(b) of the act (Merchandise Completed or Assembled in 
Other Foreign Countries), we intend to notify the ITC, in accordance 
with section 781(b)(1) of the Act and 19 CFR 351.225(f)(7)(i)(B), if 
applicable.
    Commerce will, following consultation with interested parties, 
establish a schedule for questionnaires and comments on the issues. In 
accordance with section 781(f) of the Act and 19 CFR 351.225(f)(5), 
Commerce intends to issue its final scope and circumvention 
determinations within 120 days and 300 days, respectively, of the date 
of publication of this initiation.
    This notice is published in accordance with section 781(b) of the 
Act and 19 CFR 351.225(f).

    Dated: May 11, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Orders

    The merchandise covered by the Orders is stainless sheet and 
strip, whether in coils or straight lengths. Stainless steel is an 
alloy steel containing, by weight, 1.2 percent or less of carbon and 
10.5 percent or more of chromium, with or without other elements. 
The subject sheet and strip is a flat-rolled product with a width 
that is greater than 9.5 mm and with a thickness of 0.3048 mm and 
greater but less than 4.75 mm, and that is annealed or otherwise 
heat treated, and pickled or otherwise descaled. The subject sheet 
and strip may also be further processed (e.g., cold-rolled, 
annealed, tempered, polished, aluminized, coated, painted, 
varnished, trimmed, cut, punched, or slit, etc.) provided that it 
maintains the specific dimensions of sheet and strip set forth above 
following such processing. The products

[[Page 29403]]

described include products regardless of shape, and include products 
of either rectangular or non-rectangular cross-section where such 
cross-section is achieved subsequent to the rolling process, i.e., 
products which have been ``worked after rolling'' (e.g., products 
which have been beveled or rounded at the edges).
    For purposes of the width and thickness requirements referenced 
above: (1) Where the nominal and actual measurements vary, a product 
is within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above; and (2) where the width and thickness vary for a 
specific product (e.g., the thickness of certain products with non-
rectangular cross-section, the width of certain products with non-
rectangular shape, etc.), the measurement at its greatest width or 
thickness applies.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of the Orders 
unless specifically excluded.
    Subject merchandise includes stainless sheet and strip that has 
been further processed in a third country, including but not limited 
to cold-rolling, annealing, tempering, polishing, aluminizing, 
coating, painting, varnishing, trimming, cutting, punching, and/or 
slitting, or any other processing that would not otherwise remove 
the merchandise from the scope of the Orders if performed in the 
country of manufacture of the stainless sheet and strip.
    Excluded from the scope of the Orders are the following: (1) 
Sheet and strip that is not annealed or otherwise heat treated and 
not pickled or otherwise descaled; (2) plate (i.e., flat-rolled 
stainless steel products of a thickness of 4.75 mm or more); and (3) 
flat wire (i.e., cold-rolled sections, with a mill edge, rectangular 
in shape, of a width of not more than 9.5 mm).
    The products under the Orders are currently classifiable under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings 
7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 
7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 
7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 
7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 
7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 
7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 
7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 
7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 
7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 
7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 
7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 
7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 
7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 
7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 
7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

[FR Doc. 2020-10490 Filed 5-14-20; 8:45 am]
BILLING CODE 3510-DS-P