[Federal Register Volume 76, Number 152 (Monday, August 8, 2011)]
[Notices]
[Pages 48143-48145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-20076]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-865]


Certain Hot-Rolled Carbon Steel Flat Products From the People's 
Republic of China: Preliminary Intent To Rescind the Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``Department'') is conducting an 
administrative review of the antidumping duty order on certain hot-
rolled carbon steel flat products (``hot-rolled'') from the People's 
Republic of China (``PRC'') for the period of review (``POR'') November 
1, 2009, through October 31, 2010. As discussed below, we preliminarily 
intend to rescind this review.

DATES: Effective Date: August 8, 2011.

FOR FURTHER INFORMATION CONTACT: Paul Walker or Steven Hampton, AD/CVD 
Operations, Office 9, Import Administration, International Trade 
Administration, Department of Commerce, 14th Street and Constitution 
Avenue, NW., Washington, DC 20230; telephone: (202) 482-0413 or (202) 
482-0116, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 29, 2001, the Department published the antidumping duty 
order on hot-rolled from the PRC. See Notice of the Antidumping Duty 
Order: Certain Hot-Rolled Carbon Steel Flat Products From the People's 
Republic of China, 66 FR 59561 (November 29, 2001) (``Order''). On

[[Page 48144]]

November 30, 2010, Nucor Corporation (``Nucor''), domestic producers of 
hot-rolled, requested that the Department conduct an administrative 
review of Baosteel Group Corporation, Shanghai Baosteel International 
Economic & Trading Co., Ltd., and Baoshan Iron and Steel Co., Ltd. 
(collectively ``Baosteel'').\1\ On December 28, 2010, the Department 
published in the Federal Register a notice of initiation for an 
administrative review of the Order for the period November 1, 2009, 
through October 31, 2010.\2\ On February 4, 2011, the Department 
released the U.S. Customs and Border Protection (``CBP'') data to 
parties for comments. On February 10, 2011, Baosteel requested that the 
Department obtain the customs entry and commercial invoice documents 
pertaining to the CBP data. On February 17, 2011, Baosteel submitted 
comments on the CBP data. Baosteel claimed that it did not export 
subject merchandise during the POR and the CBP information is either 
incorrect or relates to non-subject merchandise which may have been 
misclassified. On March 17, 2011, the Department released the U.S. 
entry documents that it obtained from CBP. On March 24, 2011, Nucor 
submitted comments on the U.S. entry documents and asked the Department 
to issue a full questionnaire to Baosteel. On March, 28, 2011, Baosteel 
submitted rebuttal comments to Nucor's March 24, 2011 submission. 
Baosteel claimed that the entry documents do not reveal that Baosteel 
sold subject merchandise to the United States. On June 2, 2011, the 
Department released the test report and mill certificate for the 
merchandise at issue, which it obtained from CBP. On June 14, 2011, 
Nucor submitted comments on the test report and mill certificate. Nucor 
argued that subject merchandise entered the United States and stated 
that the Department should issue questionnaires to Baosteel. On June 
14, 2011, Baosteel also submitted comments on the test report and mill 
certificate. Baosteel argued that the mere fact that Baosteel is the 
manufacturer of the product does not show that Baosteel made sales of 
subject merchandise to the United States. On June 16, 2011, Baosteel 
submitted comments with an excerpt from a recent determination in which 
the Department clearly stated its policy regarding its knowledge test 
for NME purposes.\3\
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    \1\ See Certain Hot-Rolled Carbon Steel Flat Products from the 
People's Republic of China: Final Rescission of Antidumping Duty 
Administrative Review, 74 FR 40165 (August 11, 2009), at n.1.
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation In Part, 75 FR 
81565 (December 28, 2010).
    \3\ Certain Oil Country Tubular Goods from the People's Republic 
of China: Final Determination of Sales at Less Than Fair Value, 
Affirmative Final Determination of Critical Circumstances and Final 
Determination of Targeted Dumping, 75 FR 20335 (April 19, 2010), and 
accompanying Issues and Decision Memorandum at Comment 31.
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Scope of the Order

    The products covered by the order are certain hot-rolled carbon 
steel flat products of a rectangular shape, of a width of 0.5 inch or 
greater, neither clad, plated, nor coated with metal and whether or not 
painted, varnished, or coated with plastics or other non-metallic 
substances, in coils (whether or not in successively superimposed 
layers), regardless of thickness, and in straight lengths of a 
thickness of less than 4.75 mm and of a width measuring at least 10 
times the thickness. Universal mill plate (i.e., flat-rolled products 
rolled on four faces or in a closed box pass, of a width exceeding 150 
mm, but not exceeding 1250 mm, and of a thickness of not less than 4.0 
mm, not in coils and without patterns in relief) of a thickness not 
less than 4.0 mm is not included within the scope of the order. 
Specifically included within the scope of the order are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-free 
(``IF'')) steels, high strength low alloy (``HSLA'') steels, and the 
substrate for motor lamination steels. IF steels are recognized as low 
carbon steels with micro-alloying levels of elements such as titanium 
or niobium (also commonly referred to as columbium), or both, added to 
stabilize carbon and nitrogen elements. HSLA steels are recognized as 
steels with micro-alloying levels of elements such as chromium, copper, 
niobium, vanadium, and molybdenum. The substrate for motor lamination 
steels contains micro-alloying levels of elements such as silicon and 
aluminum.
    Steel products included in the scope of the order, regardless of 
definitions in the Harmonized Tariff Schedule of the United States 
(``HTSUS''), are products in which: (i) iron predominates, by weight, 
over each of the other contained elements; (ii) the carbon content is 2 
percent or less, by weight; and, (iii) none of the elements listed 
below exceeds the quantity, by weight, respectively indicated:

1.80 percent of manganese, or
2.25 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.

    All products that meet the physical and chemical description 
provided above are within the scope of the order unless otherwise 
excluded. The following products, for example, are outside or 
specifically excluded from the scope of the order:
     Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including, e.g., 
American Society for Testing and Materials (``ASTM'') specifications 
A543, A387, A514, A517, A506).
     Society of Automotive Engineers (``SAE'')/American Iron & 
Steel Institute (``AISI'') grades of series 2300 and higher.
     Ball bearing steels, as defined in the HTSUS.
     Tool steels, as defined in the HTSUS.
     Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 2.25 percent.
     ASTM specifications A710 and A736.
     USS abrasion-resistant steels (USS AR 400, USS AR 500). 
All products (proprietary or otherwise) based on an alloy ASTM 
specification (sample specifications: ASTM A506, A507).
     Non-rectangular shapes, not in coils, which are the result 
of having been processed by cutting or stamping and which have assumed 
the character of articles or products classified outside chapter 72 of 
the HTSUS.
    The merchandise subject to the order is classified in the HTSUS at 
subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 
7211.19.75.60, and 7211.19.75.90. Certain hot-rolled carbon steel flat 
products covered by the order, including: vacuum degassed fully 
stabilized; high strength low alloy; and the substrate for motor 
lamination steel

[[Page 48145]]

may also enter under the following tariff numbers: 7225.11.00.00, 
7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 7225.40.70.00, 
7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 7226.11.90.60, 
7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 7226.91.70.00, 
7226.91.80.00, and 7226.99.00.00. Subject merchandise may also enter 
under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 7212.40.10.00, 
7212.40.50.00, and 7212.50.00.00. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written description 
of the merchandise subject to the order is dispositive.

Preliminary Rescission of Review

    The Department has analyzed all of the information on the record 
regarding alleged U.S. entries of subject merchandise during the POR by 
Baosteel. As noted above, the Department placed information on the 
record from CBP that indicated that subject merchandise produced by 
Baosteel may have entered the United States during the POR. Because the 
information found in the CBP documentation is proprietary, for further 
discussion of this issue please see the Memorandum to the File, through 
Scot T. Fullerton, Program Manager, from Steven Hampton, International 
Trade Analyst, ``Certain Hot-Rolled Carbon Steel Flat Products from the 
People's Republic of China: Analysis of CBP Entry Documentation,'' 
(``Analysis of CBP Entry Documentation'') dated concurrently with this 
notice. Based on its analysis of the record information, the Department 
preliminarily finds that the merchandise from the entry documentation 
is not subject to the scope of the antidumping duty order on hot-rolled 
carbon steel flat products from the PRC.\4\
    Because there is no information on the record which indicates that 
Baosteel made sales, shipments, or entries to the United States of 
subject merchandise during the POR, and because Baosteel is the only 
company subject to this administrative review, in accordance with 19 
CFR 351.213(d)(3) and consistent with our practice, we are 
preliminarily rescinding this review of the antidumping duty order on 
hot-rolled from the PRC for the period of November 1, 2009, through 
October 31, 2010.\5\ If the Department adopts these preliminary results 
for its final results, the cash deposit rate for Baosteel will continue 
to be the rate established in the most recently completed segment of 
this proceeding. If the Department continues to find for its final 
results that the merchandise is not subject to the scope of the 
antidumping duty order on certain hot-rolled carbon steel flat products 
from the PRC, we will refer this matter to CBP to determine the 
appropriate Customs classification for the merchandise in question.
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    \4\ See Analysis of CBP Entry Documentation.
    \5\ See Final Rescission of Antidumping Duty Administrative 
Review: Certain Hot-Rolled Carbon Steel Flat Products from the 
People's Republic of China, 72 FR 41710 (July 31, 2007).
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Comments

    Interested parties may submit comments for consideration in the 
Department's final results not later than 30 days after publication of 
this notice. See 19 CFR 351.309(c)(ii). Responses to those comments may 
be submitted not later than five days following submission of the 
comments. See 19 CFR 351.309(d). All written comments must be submitted 
in accordance with 19 CFR 351.303, and must be served on interested 
parties on the Department's service list in accordance with 19 CFR 
351.303(f)(3). Interested parties may also request a hearing within 30 
days of publication of this notice. See 19 CFR 351.310. The Department 
will issue the final results of this administrative review, which will 
include the results of its analysis of issues raised in any such 
comments, within 120 days of publication of the preliminary results, 
and will publish these results in the Federal Register.

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This notice is published in accordance with sections 751 and 
777(i)(1) of the Tariff Act of 1930, as amended, and 19 CFR 
351.213(d)(4).

    Dated: July 29, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-20076 Filed 8-5-11; 8:45 am]
BILLING CODE 3510-DS-P