[Federal Register Volume 79, Number 91 (Monday, May 12, 2014)]
[Notices]
[Pages 26936-26939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10745]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-994]


Grain-Oriented Electrical Steel From the People's Republic of 
China: Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that grain-oriented electrical steel (GOES) from the 
People's Republic of China (the PRC) is being, or is likely to be, sold 
in the United States at less than fair value, as provided in section 
733(b) of the Tariff Act of 1930, as amended (the Act). The period of 
investigation is January 1, 2013, through June 30, 2013. The estimated 
weighted-average dumping margin is listed in the ``Preliminary 
Determination'' section of this notice. Interested parties are invited 
to comment on this preliminary determination.

DATES: Effective Date: May 12, 2014.

FOR FURTHER INFORMATION CONTACT: Edythe Artman or Ericka Ukrow, 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-
3931 or (202) 482-0405, respectively.

SUPPLEMENTARY INFORMATION:

[[Page 26937]]

Background

    The Department initiated this investigation on October 24, 2013.\1\ 
For a complete description of the events that followed the initiation 
of this investigation, see the memorandum dated concurrently with and 
hereby adopted by this notice.\2\ The Preliminary Decision Memorandum 
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 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum and the electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Grain-Oriented Electrical Steel From the People's 
Republic of China, the Czech Republic, Germany, Japan, the Republic 
of Korea, Poland, and the Russian Federation: Initiation of 
Antidumping Duty Investigations, 78 FR 65283 (October 31, 2013) 
(Initiation Notice). AK Steel Corporation, Allegheny Ludlum, LLC, 
and the United Steelworkers (collectively, the petitioners) filed 
the underlying petitions. Id. at 65283.
    \2\ See memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations 
entitled: ``Decision Memorandum for the Preliminary Determination of 
the Less-Than-Fair-Value Investigation of Grain-Oriented Electrical 
Steel from the People's Republic of China'' (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The scope of this investigation covers GOES, which is a flat-rolled 
alloy steel product containing, by weight, specific levels of silicon, 
carbon, and aluminum. For a complete description of the scope of the 
investigation, see Appendix I to this notice.
    Various parties submitted comments on the scope. For a discussion 
of these comments, see the Preliminary Decision Memorandum.

Tolling and Postponement of the Deadline for the Preliminary 
Determination

    As explained in the memorandum from the Assistant Secretary for 
Enforcement and Compliance, the Department exercised its discretion to 
toll deadlines for the duration of the partial closure of the Federal 
Government from October 1, through October 16, 2013. Therefore, all 
deadlines in this segment of this proceeding have been extended by 16 
days.\3\ In accordance with the Department's practice, if a new 
deadline falls on a non-business day, the deadline will become the next 
business day.\4\
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    \3\ See Memorandum for the Record from Paul Piquado, Assistant 
Secretary for Enforcement and Compliance, ``Deadlines Affected by 
the Shutdown of the Federal Government,'' dated October 18, 2013.
    \4\ 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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    On February 10, 2014, the petitioners made a timely request for a 
50-day postponement of the preliminary determinations for this 
investigation and the other concurrent investigations of GOES, pursuant 
to section 733(c)(1)(A) of the Act and 19 CFR 351.205(e).\5\ On 
February 20, 2014, we postponed the preliminary determination by 50 
days.\6\ As a result of the postponement and aforementioned tolling, 
the revised deadline for the preliminary determination of this 
investigation is now May 2, 2014.
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    \5\ See letter from the petitioners entitled, ``Antidumping 
Investigations of Grain-Oriented Electrical Steel (``GOES'') from 
China, Czech Republic, Germany, Japan, South Korea, Poland, and 
Russia: Petitioners' Request for Extension of the Preliminary 
Determination,'' dated February 10, 2014.
    \6\ See Grain-Oriented Electrical Steel From the People's 
Republic of China, the Czech Republic, Germany, Japan, the Republic 
of Korea, Poland, and the Russian Federation: Postponement of 
Preliminary Determinations in the Antidumping Duty Investigations, 
79 FR 11082 (February 27, 2014).
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Methodology

    The Department conducted this investigation in accordance with 
section 731 of the Act. We preliminarily determine that the only 
respondent being individually investigated, Baoshan Iron & Steel Co., 
Ltd. (Baoshan), failed to cooperate to the best of its ability in 
participating in the investigation, warranting the application of facts 
otherwise available with adverse inferences, pursuant to section 
776(a)-(b) of the Act. As a part of the application of adverse facts 
available, we are treating Baoshan as part of the PRC-wide entity. 
Because the PRC-wide entity also failed to cooperate to the best of its 
ability in complying with our requests for information, we determined 
an estimated weighted-average dumping margin based on adverse facts 
available for the PRC-wide entity, which includes Baoshan.\7\ For a 
full description of the methodology and rationale underlying our 
conclusions, see the Preliminary Decision Memorandum. A list of the 
topics included in the Preliminary Decision Memorandum appears in 
Appendix II of this notice.
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    \7\ Anshan Iron & Steel Group Corporation (Anshan) failed to 
provide quantity and value data upon initiation of this 
investigation.
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Preliminary Determination

    The Department preliminarily determined that the following 
estimated weighted-average dumping margin exists for the period January 
1, 2013, through June 30, 2013:

------------------------------------------------------------------------
                                                     Estimated  weighted-
               Producer and exporter                   average  dumping
                                                      margin  (percent)
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PRC-wide entity \8\................................              159.21
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    \8\ The PRC-wide entity includes all producers and exporters of 
GOES from the PRC, including each of the companies identified in the 
petition that did not establish that they are separate from the PRC-
wide entity in this investigation: Baoshan, Anshan, Hebei Shougang 
Qian' an Iron & Steel Co., Ltd., and Wuhan Iron & Steel Co., Ltd.
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Disclosure

    Normally, the Department discloses to interested parties the 
calculations performed in connection with a preliminary determination 
within five days of the date of publication of the notice of 
preliminary determination in the Federal Register, in accordance with 
19 CFR 351.224(b). However, because the Department, in accordance with 
section 776 of the Act, preliminarily applied adverse facts available 
to determine the estimated weighted-average dumping margin for the 
mandatory respondent in this investigation, there are no calculations 
to disclose.

Verification

    Because Baoshan is the only mandatory respondent in this 
investigation and because the Department preliminarily determines it to 
be uncooperative and its information to be unreliable, the Department 
does not intend to conduct verification of the information placed in 
the record by Baoshan at this time.

Public Comment

    Interested parties are invited to comment on this preliminary 
determination. Interested parties may submit case briefs to the 
Department no later than 50 days after the date of publication of this 
preliminary determination.\9\ Rebuttal briefs, the content of which is 
limited to the issues raised in the case briefs, must be filed

[[Page 26938]]

within five days from the deadline date for the submission of case 
briefs.\10\ A list of authorities used, a table of contents, and an 
executive summary of issues should accompany any briefs submitted to 
the Department.\11\ Executive summaries should be limited to five pages 
total, including footnotes. Interested parties who wish to comment on 
this preliminary determination must file briefs electronically using IA 
ACCESS. An electronically-filed document must be received successfully 
in its entirety by IA ACCESS by 5 p.m. Eastern Standard Time on the 
date the document is due.
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    \9\ See 19 CFR 351.309(c)(1)(i).
    \10\ See 19 CFR 351.309(d)(1)-(2).
    \11\ See 19 CFR 351.309(c)(2) and (d)(2).
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    In accordance with section 774 of the Act, the Department will hold 
a hearing, to afford interested parties an opportunity to comment on 
arguments raised in case or rebuttal briefs, provided that such a 
hearing is timely requested by an interested party.\12\ 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, via IA ACCESS 
within 30 days after the date of publication of this notice.\13\ 
Requests should contain the following information: (1) The party's 
name, address, and telephone number; (2) the number of participants; 
and (3) a list of the issues to be discussed. If a request for a 
hearing is made, we will inform parties of the scheduled date and time 
of the hearing which will be held at the U.S. Department of Commerce, 
14th Street and Constitution Avenue NW., Washington, DC 20230.\14\ 
Parties may confirm by telephone the date, time, and location of the 
hearing.
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    \12\ See also 19 CFR 351.310.
    \13\ Id.
    \14\ Id.
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Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the merchandise subject to the investigation or, in the 
event of a negative preliminary determination, a request for such 
postponement is made by the petitioners. Section 19 CFR 351.210(e)(2) 
requires that requests by respondents for postponement of a final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On April 2, 2014, Baoshan requested that, in the event of an 
affirmative preliminary determination in this investigation, the 
Department postpone its final determination by 60 days (i.e., to 135 
days after the date of publication of the preliminary determination) 
and agreed to extend the application of the provisional measures, as 
prescribed under section 733(d) of the Act and 19 CFR 351.210(e)(2), 
from a four-month period to a period not to exceed six months.\15\ 
Because (1) our preliminary determination is affirmative; (2) the 
requesting producer or exporter accounts for a significant proportion 
of exports of the subject merchandise; and (3) no compelling reasons 
for denial exist, we are postponing the final determination, in 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), until no later than 135 days after the publication 
of this notice in the Federal Register and we are extending the 
provisional measures from a four-month period to a period not greater 
than six months. Accordingly, we will issue our final determination no 
later than 135 days after the date of publication of this preliminary 
determination.\16\
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    \15\ See letter from Baoshan entitled, ``Antidumping Duty 
Investigation of Grain-Oriented Electrical Steel from People's 
Republic of China: Postponement Request of Final Determination,'' 
dated April 2, 2014.
    \16\ See 19 CFR 351.210(b)(2) and (e).
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will instruct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of GOES from the PRC, as described in the scope of the 
investigation of Appendix I of this notice, which are entered or 
withdrawn from warehouse for consumption on or after the date of 
publication of this notice in the Federal Register.\17\
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    \17\ See section 733(d)(2) of the Act.
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    Pursuant to section 733(d) of the Act and 19 CFR 351.205(d), we 
will instruct CBP to require a cash deposit \18\ equal to the estimated 
weighted-average dumping margin, as indicated in the chart above. This 
suspension of liquidation will remain in effect until further notice.
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    \18\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of our affirmative 
preliminary determination of sales at less than fair value. Because our 
preliminary determination in this investigation is affirmative, section 
735(b)(2) of the Act requires that the ITC make its final determination 
as to whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
GOES from the PRC before the later of 120 days after the date of this 
preliminary determination or 45 days after our final determination. 
Because we are postponing the deadline for our final determination to 
135 days from the date of the publication of this preliminary 
determination, as discussed above, the ITC will make its final 
determination no later than 45 days after our final determination.

Notice to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act.

    Dated: May 2, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers 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 these 
investigations is dispositive. Excluded are flat-rolled products not 
in coils that, prior to importation into the United States, have 
been cut to a shape and undergone all punching, coating, or other 
operations necessary for classification in Chapter 85 of the HTSUS 
as a transformer part (i.e., laminations).

Appendix II

1. Summary
2. Background
3. Scope of the Investigation
4. Scope Comments
5. Product Comparisons
6. Respondent Selection

[[Page 26939]]

7. Discussion of the Methodology
8. Non-Market Economy Country Status
9. Separate Rates Determination
10. The PRC-Wide Entity
    A. Use of Facts Available and Adverse Facts Available
    B. Application of Total Adverse Facts Available to the PRC-Wide 
Entity
    C. Selection of an Adverse-Facts-Available Rate
    D. Corroboration of Secondary Information
11. Recommendation

[FR Doc. 2014-10745 Filed 5-9-14; 8:45 am]
BILLING CODE 3510-DS-P