[Federal Register Volume 79, Number 47 (Tuesday, March 11, 2014)]
[Notices]
[Pages 13617-13619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-05259]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-995]


Countervailing Duty Investigation of Grain-Oriented Electrical 
Steel From the People's Republic of China: Preliminary Determination 
and Alignment of Final Determination With Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (the ``Department'') preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of grain-oriented electrical steel from the 
People's Republic of China (the ``PRC'').\1\ We invite interested 
parties to comment on this preliminary determination.
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    \1\ Due to the closure of the Federal Government on March 3, 
2014, Commerce reached this determination on the next business day 
(i.e., March 4, 2014). See Notice of Clarification: Application of 
``Next Business Day'' Rule for Administrative Determination 
Deadlines Pursuant to the Tariff Act of 1930, As Amended, 70 FR 
24533 (May 10, 2005).

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DATES: Effective Date: March 12, 2014.

FOR FURTHER INFORMATION CONTACT: Yasmin Nair, David Cordell or Brian 
Davis, AD/CVD Operations, Office VI, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone 
202.482.3813, 202.482.0408 or 202.482.7924, respectively.

SUPPLEMENTARY INFORMATION: 

Scope of the Investigation

    The scope of this investigation covers grain-oriented silicon 
electrical steel (``GOES''). GOES is a flat-rolled alloy steel product 
containing by weight at least 0.6 percent but not more than 6 percent 
of silicon, not more than 0.08 percent of carbon, not more than 1.0 
percent of aluminum, and no other element in an amount that would give 
the steel the characteristics of another alloy steel, in coils or in 
straight lengths. The GOES that is subject to this investigation is 
currently classifiable under subheadings 7225.11.0000, 7226.11.1000, 
7226.11.9030, and 7226.11.9060 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the scope 
of this investigation is dispositive.

Methodology

    The Department is conducting this countervailing duty (``CVD'') 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the ``Act''). For each of the subsidy programs found 
countervailable, we preliminarily determine that there is a subsidy, 
i.e., a financial contribution by an ``authority'' that gives rise to a 
benefit to the recipient, and that the subsidy is specific.\2\ For a 
full description of the

[[Page 13618]]

methodology underlying our preliminary conclusions, see the Preliminary 
Decision Memo.\3\ The Preliminary Decision Memo is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (``IA ACCESS''). IA ACCESS is available to registered users at 
http://iaaccess.trade.gov, and is available to all parties in the 
Central Records Unit, Room 7046 of the main Department of Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memo can be accessed directly at http://trade.gov/enforcement. The 
signed Preliminary Decision Memo and the electronic versions of the 
Preliminary Decision Memo are identical in content.
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    \2\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Countervailing Duty Investigation of Grain-Oriented Electrical 
Steel from the People's Republic of China: Decision Memorandum for 
the Preliminary Determination,'' dated concurrently with this notice 
(``Preliminary Decision Memo'').
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    The Department notes that, in making these findings, we relied, in 
part, on facts available and, because one or more respondents did not 
act to the best of their ability to respond to the Department's 
requests for information, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\4\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memo.
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    \4\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memo, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination in this investigation with the final 
determination in the companion antidumping duty (``AD'') investigation 
of GOES from the PRC. Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than July 16, 2014, unless 
postponed.

Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an individual rate for each exporter/producer of the subject 
merchandise individually investigated. We preliminarily determine the 
countervailable subsidy rates to be:

------------------------------------------------------------------------
                    Exporter/Producer                     Subsidy rate %
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Baoshan Iron & Steel Co., Ltd...........................           49.15
All-Others..............................................           49.15
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    In accordance with sections 703(d)(1)(B) and (2) of the Act, we are 
directing U.S. Customs and Border Protection to suspend liquidation of 
all entries of GOES from the PRC that are entered, or withdrawn from 
warehouse, for consumption on or after the date of the publication of 
this notice in the Federal Register, and to require a cash deposit for 
such entries of merchandise in the amounts indicated above.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not investigated, we apply an ``all-others'' rate, which is 
normally calculated by weight-averaging the subsidy rates of the 
individual companies selected as respondents, excluding any zero or de 
minimis rates and any rates calculated entirely under section 776 of 
the Act. Therefore, for purposes of determining the ``all others'' rate 
and pursuant to sections 703(d) and 705(c)(5)(A) of the Act, we are 
using the subsidy rate calculated for Baoshan, 49.15 percent, for the 
``all others'' rate, as referenced above.

Disclosure and Public Comment

    The Department will disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination in accordance with 19 CFR 
351.224(b). Case briefs or other written comments for all non-scope 
issues may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the final 
verification report is issued in this proceeding, and rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
five days after the deadline date for case briefs.\5\ A table of 
contents, list of authorities used and an executive summary of issues 
should accompany any briefs submitted to the Department. This summary 
should be limited to five pages total, including footnotes.
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    \5\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically using IA ACCESS. An electronically filed document 
must be received successfully in its entirety by the Department's 
electronic records system, IA ACCESS, by 5:00 p.m. Eastern Standard 
Time, within 30 days after the date of publication of this notice.\6\ 
Requests should contain the party's name, address, and telephone 
number; the number of participants; and a list of the issues to be 
discussed. If a request for a hearing is made, the Department intends 
to hold the hearing at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230, at a date and time to be 
determined. Parties will be notified of the date and time of any 
hearing.
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    \6\ See 19 CFR 351.310(c).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (``ITC'') of our determination. In 
addition, we are making available to the ITC all non-privileged and 
non-proprietary information relating to this investigation. We will 
allow the ITC access to all privileged and business proprietary 
information in our files, provided the ITC confirms that it will not 
disclose such information, either publicly or under an administrative 
protective order, without the written consent of the Assistant 
Secretary for Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: March 4, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memo

1. Scope Comments
2. Scope of the Investigation
3. Alignment
4. Respondent Selection
5. Injury Test
6. Application of the Countervailing Duty Law to Imports from the PRC
7. Subsidies Valuation
8. Benchmarks and Discount Rates
9. Use of Facts Otherwise Available and Adverse Inferences

[[Page 13619]]

10. Analysis of Programs
11. Verification

[FR Doc. 2014-05259 Filed 3-10-14; 8:45 am]
BILLING CODE 3510-DS-P