[Federal Register Volume 79, Number 190 (Wednesday, October 1, 2014)]
[Notices]
[Pages 59221-59223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23390]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-995]


Grain-Oriented Electrical Steel from the People's Republic of 
China: Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of grain-oriented electrical steel (GOES) from the People's Republic of 
China (the PRC). For information on the estimated subsidy rates, see 
the ``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: October 1, 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:

Background

    Petitioners to this investigation are the AK Steel Corporation, 
Allegheny Ludlum, LLC, as well as the United Steelworkers, which 
represents employees of Allegheny Ludlum (collectively, Petitioners). 
This investigation covers 19 government programs. The mandatory 
respondent to this investigation is Baoshan Iron & Steel Co., Ltd.

Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2012, through December 31, 2012.

Case History

    The events that have occurred since the Department published the 
Preliminary Determination on March 11, 2014,\1\ are discussed in the 
Memorandum to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Determination of Grain-Oriented Electrical Steel from the People's 
Republic of China'' (Decision Memorandum), which is hereby adopted by 
this notice.\2\
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    \1\ See 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, 79 FR 13617 (March 11, 2014).
    \2\ Public versions of all business proprietary documents and 
all public documents are on file electronically via the Antidumping 
and Countervailing Duty Centralized Electronic Service System (IA 
ACCESS). Access to IA ACCESS is available to registered users at 
http://iaaccess.trade.gov and in the Central Records Unit, Room 7046 
of the main Department of Commerce building.
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Scope of the Investigation

    The scope of the 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.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs submitted by parties in this investigation 
are addressed in the Decision Memorandum, dated concurrently with

[[Page 59222]]

this notice. A list of the issues that parties raised and to which we 
responded in the Decision Memorandum is attached to this notice as 
Appendix II.
    The Decision Memorandum is a public document and is on file 
electronically via IA ACCESS. In addition, a complete version of the 
Decision Memorandum can be accessed directly on the Internet at http://enforcement.trade.gov/frn/index.html. The signed and the electronic 
versions of this memorandum are identical in content.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we relied on facts 
available and applied an adverse inference, in accordance with sections 
776(a) and (b) of the Tariff Act of 1930, as amended (the Act), with 
regard to (1) the existence of a financial contribution, benefit, and 
specificity for the alleged subsidy programs and (2) Baoshan Iron & 
Steel Co., Ltd.'s (Baoshan) net subsidy rate. A full discussion of our 
decision to rely on adverse facts available is presented in the 
Decision Memorandum under the section ``Use of Facts Otherwise 
Available and Adverse Inferences.''

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we have 
calculated an individual rate for Baoshan. Section 705(c)(5)(A)(i) of 
the Act states that for companies not individually investigated, we 
will determine an ``all-others'' rate equal to the weighted average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable rates, and any rates determined entirely under section 
776 of the Act. Section 705(c)(5)(A)(ii) of the Act states that if the 
countervailable subsidy rates for all exporters and producers 
individually investigated are zero or de minimis rates, or are 
determined entirely under section 776 of the Act, the Department may 
use any reasonable method to establish an all-others rate for exporters 
and producers not individually investigated, including averaging the 
weighted average countervailable subsidy rates determined for the 
exporters and producers individually investigated. As described above, 
Baoshan's subsidy rate was calculated entirely under section 776 of the 
Act. Therefore, we have resorted to ``any reasonable method'' to derive 
the ``all-others'' rate, as described under section 705(c)(5)(A)(ii) of 
the Act. We are basing the ``all-others'' rate on the rate determined 
for Baoshan, consistent with section 705(c)(5)(A)(ii) of the Act.\3\ 
This issue is discussed in more detail in Comment 1 of the Decision 
Memorandum.
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    \3\ See, e.g., Certain Potassium Phosphate Salts From the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination and Termination of Critical Circumstances Inquiry, 75 
FR 30375, 30376 (June 1, 2010).
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    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                             Net subsidy Ad Valorem rate
             Producer/exporter                        (percent)
------------------------------------------------------------------------
Baoshan Iron & Steel Co., Ltd.............                        127.69
All-Others................................                        127.69
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    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of GOES from the 
PRC that were entered or withdrawn from warehouse, for consumption on 
or after March 11, 2014, the date of publication of the Preliminary 
Determination in the Federal Register. In accordance with section 
703(d) of the Act, we issued instructions to CBP to discontinue the 
suspension of liquidation for countervailing duty (CVD) purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
July 9, 2104, but to continue the suspension of liquidation of all 
entries from March 11, 2014, through July 8, 2014.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
merchandise in the amounts indicated above. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation that is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: September 24, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--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

[[Page 59223]]

purposes, the written description of the scope of this investigation 
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--Issues and Decision Memorandum

I. Summary
II. Background
    A. Case History
    B. Period of Investigation
III. Scope Comments
IV. Scope of the Investigation
V. Application of the Countervailing Duty Law to Imports From the 
PRC
VI. Use of Facts Otherwise Available and Adverse Inferences
    A. Selection of the Adverse Facts Available Rate
    B. Subsidy Rate Chart
VII. Analysis of Comments
Comment 1: Countervailable Subsidy Rate for Baoshan and All-Others 
Rate
VIII. Conclusion

[FR Doc. 2014-23390 Filed 9-30-14; 8:45 am]
BILLING CODE 3510-DS-P