[Federal Register Volume 79, Number 99 (Thursday, May 22, 2014)]
[Notices]
[Pages 29423-29426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-11906]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-843, A-588-872, A-401-809]


Non-Oriented Electrical Steel From Germany, Japan, and Sweden: 
Preliminary Determinations of Sales at Less Than Fair Value, and 
Preliminary Affirmative Determinations of Critical Circumstances, in 
Part

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

SUMMARY: The U.S. Department of Commerce (the ``Department'') 
preliminarily determines that non-oriented electrical steel (``NOES'') 
from Germany, Japan, and Sweden is being sold, or is likely to be, sold 
in the United States at less than fair value (``LTFV''), as provided in 
section 733(b) of the Tariff Act of 1930, as amended (the ``Act''). The 
period of investigation (``POI'') is July 1, 2012, through June 30, 
2013. The estimated weighted-average dumping margins are listed in the 
``Preliminary Determinations'' section of this notice. Interested 
parties are invited to comment on these preliminary determinations.

DATES: Effective May 22, 2014.

FOR FURTHER INFORMATION CONTACT: Patrick O'Connor at (202) 482-0989 
(Germany); Thomas Martin at (202) 482-3936 (Japan); or Drew Jackson at 
(202) 482-4406 (Sweden); AD/CVD Operations, Enforcement and Compliance, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the notice of initiation of these 
investigations on November 18, 2013.\1\ Pursuant to a timely request 
from AK Steel Corporation (``Petitioner'') and section 773(c)(1)(A) of 
the Act, the Department postponed these preliminary LTFV determinations 
50 days.\2\
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    \1\ See Non-Oriented Electrical Steel From the People's Republic 
of China, Germany, Japan, the Republic of Korea, Sweden, and Taiwan: 
Initiation of Antidumping Duty Investigations, 78 FR 69041 (November 
18, 2013).
    \2\ See Non-Oriented Electrical Steel From the People's Republic 
of China, Germany, Japan, the Republic of Korea, Sweden and Taiwan: 
Postponement of Preliminary Determinations of Antidumping Duty 
Investigations, 79 FR 13987 (March 12, 2014).
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Scope of the Investigations

    The merchandise subject to these investigations consists of non-
oriented electrical steel (NOES), which includes cold-rolled, flat-
rolled, alloy steel products, whether or not in coils, regardless of 
width, having an actual thickness of 0.20 mm or more, in which the core 
loss is substantially equal in any direction of magnetization in the 
plane of the material. The term ``substantially equal'' means that the 
cross grain direction of core loss is no more than 1.5 times the 
straight grain direction (i.e., the rolling direction) of core loss. 
NOES has a magnetic permeability that does not exceed 1.65 Tesla when 
tested at a field of 800 A/m (equivalent to 10 Oersteds) along (i.e., 
parallel to) the rolling direction of the sheet (i.e., B800 
value). NOES contains by weight more than 1.00 percent of silicon but 
less than 3.5 percent of silicon, not more than 0.08 percent of carbon, 
and not more than 1.5 percent of aluminum. NOES has a surface oxide 
coating, to which an insulation coating may be applied.
    NOES is subject to these investigations whether it is fully 
processed (i.e., fully annealed to develop final magnetic properties) 
or semi-processed (i.e., finished to final thickness and physical form 
but not fully annealed to develop final magnetic properties). Fully 
processed NOES is typically made to the requirements of ASTM 
specification A 677, Japanese Industrial Standards (JIS) specification 
C 2552, and/or International Electrotechnical Commission (IEC) 
specification 60404-8-4. Semi-processed NOES is typically made to the 
requirements of ASTM specification A 683. However, the scope of these 
investigations is not limited to merchandise meeting the ASTM, JIS and 
IEC specifications noted immediately above.
    NOES is sometimes referred to as cold-rolled non-oriented (CRNO), 
non-grain oriented (NGO), non-oriented (NO), or cold-rolled non-grain 
oriented (CRNGO) electrical steel. These terms are interchangeable.
    Excluded from the scope of these investigations 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 
Harmonized Tariff Schedule of the United States (HTSUS) as a part 
(i.e., lamination) for use in a device such as a motor, generator, or 
transformer.
    The subject merchandise is provided for in subheadings 
7225.19.0000, 7226.19.1000, and 7226.19.9000 of the HTSUS. Subject 
merchandise may also be entered under subheadings 7225.50.8085, 
7225.99.0090, 7226.92.5000, 7226.92.7050, 7226.92.8050, 7226.99.0180 of 
the HTSUS. Although HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope is dispositive.

Methodology

    The Department conducted these investigations in accordance with 
section 731 of the Act. As noted above, the mandatory respondents did 
not respond to the Department's requests for information. Pursuant to 
section 776(a) of the Act, the Department preliminarily relied upon 
facts otherwise available to assign estimated weighted-average dumping 
margins to the mandatory

[[Page 29424]]

respondents. Furthermore, in accordance with section 776(b) of the Act, 
the Department applied an inference adverse to the interests of the 
mandatory respondents in selecting from the facts otherwise available. 
For a full description of the analysis underlying our preliminary 
determinations, see the Preliminary Decision Memoranda for Germany, 
Japan, and Sweden, which are hereby adopted by this notice.\3\ These 
Preliminary Decision Memoranda are public documents and are 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 https://iaaccess.trade.gov, and it is available to all parties in the 
Department's Central Records Unit, located at room 7046 of the main 
Department of Commerce building. In addition, a complete version of 
these Preliminary Decision Memoranda can be found on the Internet at 
http://enforcement.trade.gov/frn. The signed Preliminary Decision 
Memoranda and the electronic versions of the Preliminary Decision 
Memoranda are identical in content.
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    \3\ See ``Decision Memorandum for Preliminary Determination of 
the Antidumping Duty Investigation: Non-Oriented Electrical Steel 
from Germany'' from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance; ``Decision Memorandum for Preliminary Determination of 
the Antidumping Duty Investigation: Non-Oriented Electrical Steel 
from the Japan'' from Christian Marsh, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance; and, ``Decision Memorandum for Preliminary Determination 
of the Antidumping Duty Investigation: Non-Oriented Electrical Steel 
from Sweden'' from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, each dated concurrently with these preliminary 
determinations (collectively, ``Preliminary Decision Memoranda'').
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Scope Comments

    For a complete discussion of scope comments received from 
interested parties and changes the Department made to the scope of the 
investigations, see Preliminary Decision Memoranda.\4\ The ``Scope of 
the Investigations'' section above reflects all changes.
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    \4\ Id.
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Postponement of the Preliminary Determinations

    On February 28, 2014, AK Steel Corporation (the petitioner) made a 
timely request for a 50-day postponement of the preliminary 
determinations for this and the other concurrent NOES LTFV 
investigations, pursuant to section 733(c)(1)(A) of the Act and 19 CFR 
351.205(b)(2) and (e).\5\ On March 12, 2014, we published our notice 
postponing the preliminary determinations by 50 days in accordance with 
sections 733(c)(1)(A) and (2) of the Act and 19 CFR 351.205(f).\6\ As a 
result of the postponement, the revised deadline for the preliminary 
determinations for these investigations is now May 15, 2014.
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    \5\ See Letter from Petitioner to the Secretary of Commerce, 
``Non-Oriented Electrical Steel from the People's Republic of China, 
Germany, Japan, the Republic of Korea, Sweden and Taiwan: Request 
for Postponement of the Preliminary Determinations,'' dated February 
28, 2014.
    \6\ See Non-Oriented Electrical Steel from the People's Republic 
of China, Germany, Japan, the Republic of Korea, Sweden and Taiwan: 
Postponement of Preliminary Determinations of Antidumping Duty 
Investigations, 79 FR 13987 (March 12, 2014).
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Preliminary Affirmative Determinations of Critical Circumstances, in 
Part

    On March 6, 2014, Petitioner filed timely critical circumstances 
allegations, pursuant to section 733(e)(1) of the Act and 19 CFR 
351.206(c)(1), alleging that critical circumstances exist with respect 
to imports of the merchandise under consideration from Germany, Japan, 
and Sweden.\7\ In accordance with 19 CFR 351.206(c)(2)(i), when a 
critical circumstances allegation is submitted more than 20 days before 
the scheduled date of the preliminary determination, the Department 
will issue a preliminary finding whether there is a reasonable basis to 
believe or suspect that critical circumstances exist no later than the 
date of the preliminary determination. Based on our analyses, in 
accordance with section 733(e) of the Act and 19 CFR 351.206, we 
preliminarily find that critical circumstances exist for each of the 
mandatory respondents in the investigations concerning NOES from 
Germany, Japan and Sweden, and for all other producers and exporters 
subject to the investigations concerning NOES from Japan and Sweden. 
That is, with respect to these companies, we preliminarily determine 
that (1) importers of merchandise knew or should have known that the 
exporter was selling the merchandise under consideration at LTFV and 
that there was likely to be material injury in accordance with section 
733(e)(1)(A) of the Act; and (2) imports of subject merchandise have 
been massive over a relatively short period in accordance with section 
733(e)(1)(B) of the Act. With respect to all other producers and 
exporters subject to the investigation concerning NOES from Germany, 
including ThyssenKrupp Steel Europe AG, we preliminarily do not find 
that critical circumstances exist.\8\
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    \7\ See Petitioner's Critical Circumstances Allegations 
regarding Germany, Japan, and Sweden, dated March 6, 2014.
    \8\ For a full description of the methodology and results of our 
critical circumstances analysis, see the Preliminary Decision 
Memoranda.
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All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated all-
others rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated excluding any zero or, de 
minimis margins or any margins determined entirely under section 776 of 
the Act. Pursuant to section 735(c)(5)(B) of the Act, if the estimated 
weighted-average dumping margins established for all exporters and 
producers individually examined are zero, de minimis or determined 
based entirely under section 776 of the Act, the Department may use any 
reasonable method to establish the estimated weighted-average dumping 
margin for all other producers or exporters. We have determined the 
dumping margin for each of the mandatory respondents in the Germany, 
Japan, and Sweden investigations entirely under section 776 of the Act. 
Therefore, the only available dumping margins for these preliminary 
determinations are found in the petition. Pursuant to section 
735(c)(5)(B) of the Act, and the Department's practice under these 
circumstances we calculated the all others rate as a simple average of 
the margins from the petition.\9\ For a full description of the 
methodology underlying our preliminary determinations, see the 
Preliminary Decision Memoranda.\10\
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    \9\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Sodium Nitrite from the Federal Republic of 
Germany, 73 FR 21909, 21912 (April 23, 2008), unchanged in Notice of 
Final Determination of Sales at Less Than Fair Value: Sodium Nitrite 
from the Federal Republic of Germany, 73 FR 38986, 38987 (July 8, 
2008), and accompanying Issues and Decision Memorandum at Comment 2; 
see also Notice of Final Determination of Sales at Less Than Fair 
Value: Raw Flexible Magnets From Taiwan, 73 FR 39673, 39674 (July 
10, 2008); Steel Threaded Rod From Thailand: Preliminary 
Determination of Sales at Less Than Fair Value and Affirmative 
Preliminary Determination of Critical Circumstances, 78 FR 79670, 
79671 (December 31, 2013), unchanged in Steel Threaded Rod from 
Thailand: Final Determination of Sales at Less Than Fair Value and 
Affirmative Final Determination of Critical Circumstances, 79 FR 
14476, 14477 (March 14, 2014).
    \10\ See ``Non-Oriented Electrical Steel from the Federal 
Republic of Germany: Calculation of All Others Rate'' from Patrick 
O'Connor, International Trade Compliance Analyst, Office IV, to The 
File; ``Non-Oriented Electrical Steel from Japan: Calculation of All 
Others Rate'' from Thomas Martin, International Trade Compliance 
Analyst, Office IV, to The File; and ``Non-Oriented Electrical Steel 
from Sweden: Calculation of All Others Rate'' from Drew Jackson, 
International Trade Compliance Analyst, Office IV, to The File, each 
dated concurrently with these preliminary determinations. See, e.g., 
Notice of Final Determination of Sales at Less Than Fair Value: Raw 
Flexible Magnets From Taiwan, 73 FR 39673, 39674 (July 10, 2008) 
(where the Department determined the all others rate using a simple 
average of the alleged dumping margins from the petition).

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[[Page 29425]]

Preliminary Determinations

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist for the producers or 
exporters during the period July 1, 2012, through June 30, 2013 at the 
following rates:

Germany

------------------------------------------------------------------------
                                                                 Rate
                    Producer or exporter                      (percent)
------------------------------------------------------------------------
CD Walzholz................................................        98.84
Thyssenkrupp Electrical Steel EBG GMBH.....................        98.84
All Others.................................................        86.29
------------------------------------------------------------------------

Japan

------------------------------------------------------------------------
                                                                 Rate
                    Producer or exporter                      (percent)
------------------------------------------------------------------------
JFE Steel Corporation......................................       204.79
Sumitomo Corporation.......................................       204.79
All Others.................................................       135.59
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Sweden

------------------------------------------------------------------------
                                                                 Rate
                    Producer or exporter                      (percent)
------------------------------------------------------------------------
Surahammars Bruks AB.......................................       126.72
All Others.................................................        98.46
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Disclosure

    We will disclose the calculations performed to parties in this 
proceeding within five days after the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    Because none of the mandatory respondents in these investigations 
provided information requested by the Department and the Department 
preliminarily determines each of the mandatory respondents to have been 
uncooperative, verification will not be conducted.

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will direct 
Customs and Border Protection (``CBP'') to suspend liquidation of all 
entries of NOES from Germany from companies receiving the ``all 
others'' rate that are entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Further, because we have preliminarily found that 
critical circumstances exist in the Japan and Sweden investigations 
with regard to the mandatory respondents and companies receiving the 
``all others'' rate as well as for the mandatory respondents in the 
Germany investigation, we will instruct CBP to suspend liquidation of 
relevant entries from Germany, Japan, and Sweden entered, or withdrawn 
from warehouse, for consumption up to 90 days prior to the date of 
publication of this notice in the Federal Register, pursuant to section 
733(e)(2) of the Act.
    Pursuant to section 733(d) of the Act and 19 CFR 351.205(d), we 
will instruct CBP to require a cash deposit as follows: (1) The cash 
deposit rates for mandatory respondents will be equal to the rates that 
we have determined in these preliminary determinations for these 
respondents; (2) if the exporter is not a mandatory respondent 
identified in one of these investigations but the producer is, the cash 
deposit rate will be the specific rate established for the producer of 
the subject merchandise in these preliminary determinations; and (3) 
the cash deposit rate for all other producers or exporters will be 
equal to the country-specific ``all others'' rate determined in these 
preliminary determinations. These suspension of liquidation 
instructions will remain in effect until further notice.\11\
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    \11\ 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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International Trade Commission Notification

    In accordance with section 733(f) of the Act, we have notified the 
International Trade Commission (``ITC'') of our preliminary affirmative 
determinations. In accordance with section 735(b)(2) of the Act, if the 
Department's final determinations are affirmative, then the ITC will 
determine before the later of 120 days after the date of these 
preliminary determinations or 45 days after our final determinations 
whether imports of NOES from Germany, Japan, and Sweden are materially 
injuring, or threatening material injury to, the U.S. industry.

Public Comment

    Interested parties are invited to comment on these preliminary 
determinations. Interested parties may submit case briefs to the 
Department no later than thirty days after the publication of these 
preliminary determinations. Rebuttal briefs, the content of which is 
limited to the issues raised in the case briefs, must be filed within 
five days of the deadline date for the submission of case briefs.\12\ A 
list of authorities used, a table of contents, and an executive summary 
of issues should accompany any briefs submitted to the Department.\13\ 
Executive summaries should be limited to five pages total, including 
footnotes. Case and rebuttal briefs must be submitted to the Department 
electronically using IA ACCESS.\14\ An electronically-filed document 
must be received successfully in its entirety by IA ACCESS by 5 p.m. on 
the date the document is due.
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    \12\ See section 351.309(d) of the Department's regulations.
    \13\ See section 351.309(c)(2) of the Department's regulations.
    \14\ Electronic filing requirements via IA ACCESS can be found 
at section 351.303 of the Department's regulations; see also 
Antidumping and Countervailing Duty Proceedings: Electronic Filing 
Procedures; Administrative Protective Order Procedures, 76 FR 39263 
(July 6, 2011).
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    In accordance with section 774 of the Act, the Department will hold 
a public hearing, if timely requested, to afford interested parties an 
opportunity to comment on issues raised in case briefs, provided that 
such a hearing is requested by an interested party by electronically 
filing the request via IA ACCESS.\15\ Any interested party may request 
a hearing within 30 days of publication of this notice.\16\ Hearing 
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 timely request for a 
hearing is made, parties will be notified of the time and date for the 
hearing to be held at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230.\17\ Parties should 
confirm by telephone the date, time, and location of the hearing 48 
hours before the scheduled date. Oral presentations will be limited to 
issues raised in the briefs.
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    \15\ Id.
    \16\ See section 351.310(c) of the Department's regulations.
    \17\ See section 351.310(d) of the Department's regulations.

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[[Page 29426]]

Notification to Interested Parties

    These preliminary determinations are issued and published pursuant 
to sections 733(f) and 777(i)(1) of the Act.

    Dated: May 15, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

List of Topics Discussed in the Preliminary Decision Memoranda

1. Summary
2. Background
3. Period of Investigation
4. Scope Comments
5. Scope of the Investigation
6. Comments on Physical Characteristics and Model Matching Hierarchy
7. Application of Facts Available and Use of Adverse Inference
8. All Others Rate
9. Critical Circumstances
10. Conclusion

[FR Doc. 2014-11906 Filed 5-21-14; 8:45 am]
BILLING CODE 3510-DS-P