[Federal Register Volume 79, Number 190 (Wednesday, October 1, 2014)]
[Notices]
[Pages 59224-59226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23393]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-871]


Grain-Oriented Electrical Steel From the Republic of Korea: Final 
Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (the Department) determines that 
grain-oriented electrical steel (GOES) from the Republic of Korea 
(Korea) is being sold in the United States at less than fair value 
(LTFV) pursuant to section 735 of the Tariff Act of 1930, as amended 
(the Act). The final weighted-average dumping margins of sales at LTFV 
are listed below in the ``Final Determination'' section of this notice.

DATES: Effective Date: October 1, 2014.

FOR FURTHER INFORMATION CONTACT: Mark Flessner at (202) 482-6312 or 
Steve Bezirganian at (202) 482-1131; 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.

SUPPLEMENTARY INFORMATION: 

Background

    On May 12, 2014, the Department published in the Federal Register 
the preliminary determination of sales at LTFV in the LTFV 
investigation of GOES from Korea.\1\ The following events occurred 
since the Preliminary Determination was issued.
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    \1\ See Grain-Oriented Electrical Steel from the Republic of 
Korea: Preliminary Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination, 79 FR 26939 (May 12, 2014) 
(Preliminary Determination).
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    Between May 25, 2014, and June 20, 2014, the Department conducted 
sales and cost verifications of POSCO in accordance with section 782(i) 
of the Act.\2\
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    \2\ See ``Verification'' section below.
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    On August 4, 2014, and August 11, 2014, the petitioners and a 
domestic interested party,\3\ jointly, and POSCO each submitted case 
and rebuttal briefs, respectively.
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    \3\ The petitioners in this investigation are AK Steel 
Corporation, Allegheny Ludlum, LLC, and the United Steelworkers. In 
addition, the International Union, United Automobile, Aerospace, and 
Agricultural Implemental Workers of America (UAW) is a domestic 
interested party.
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Period of Investigation

    The period of investigation (POI) is July 1, 2012, through June 30, 
2013.

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 Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum 
\4\ which is hereby adopted with this notice. A list of the issues 
raised is attached to this notice as Appendix II. The Issues and

[[Page 59225]]

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 it 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 Issues and Decision Memorandum can be accessed directly at 
http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \4\ See the memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for AD/CVD Operations, to Paul Piquado, 
Assistant Secretary for Enforcement and Compliance, entitled, 
``Issues and Decision Memorandum for the Final Affirmative 
Determination in the Less than Fair Value Investigation of Grain-
Oriented Electrical Steel from the Republic of Korea,'' dated 
September 24, 2014 (Issues and Decision Memorandum).
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Verification

    As provided in section 782(i) of the Act, in May and June, 2014, we 
verified the sales and cost information submitted by POSCO for use in 
our final determination. We used standard verification procedures 
including an examination of relevant accounting and production records, 
and original source documents provided by POSCO.\5\
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    \5\ See the memorandum from Mark Flessner and Tyler R Weinhold 
to the File entitled, ``Grain-Oriented Electrical Steel from Korea: 
Verification Report for POSCO,'' dated July 14, 2014; see also the 
memorandum from LaVonne Clark to the File entitled, ``Verification 
of the Cost Response of POSCO Corporation in the Antidumping Duty 
Investigation of Grain-Oriented Electrical Steel from the Republic 
of Korea,'' dated July 28, 2014.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the Preliminary Determination. 
For a discussion of these changes, see the ``Margin Calculations'' 
section of the Issues and Decision Memorandum. Certain other changes 
were made to the Preliminary Determination which are detailed in the 
COP and CV Calculations Memorandum.\6\ The public version of the COP 
and CV Calculation Memorandum is also available to any party through IA 
ACCESS or in the Department's Central Record Unit.
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    \6\ See the memorandum from LaVonne Clark to Neal M. Halper, 
Director, Office of Accounting, entitled, ``Cost of Production and 
Constructed Value Calculation Adjustments for the Final 
Determination--POSCO,'' dated September 24, 2014 (COP and CV 
Calculations Memorandum).
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Final Determination

    The estimated weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
                    Producer/exporter                         dumping
                                                              margin
                                                             (percent)
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POSCO...................................................            3.68
All Others..............................................            3.68
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed for this final 
determination within five days of its public announcement, in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of GOES from Korea as 
described in the ``Scope of the Investigation'' section of this notice, 
which were entered, or withdrawn from warehouse, for consumption on or 
after May 12, 2014, the date of publication of the preliminary 
determination of this investigation in the Federal Register.
    Further, the Department will instruct CBP to require a cash deposit 
equal to the weighted-average amount by which normal value exceeds U.S. 
price as follows: (1) For the respondent listed in the table above 
(i.e., POSCO), the cash deposit rate will be equal to the estimated 
weighted-average dumping margin which the Department determined in this 
final determination; (2) if the exporter is not a respondent examined 
in this investigation, but the producer is, the cash deposit rate will 
be the rate established for the producer of the subject merchandise; 
and (3) the cash deposit rate for all other producers or exporters will 
be 3.68 percent, the all others rate listed above. These suspension of 
liquidation instructions will remain in effect until further notice.

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 examined, excluding all rates that are zero 
or de minimis, and all rates determined entirely under section 776 of 
the Act. The all others rate is based on the estimated weighted-average 
dumping margin calculated for POSCO, the only company for which the 
Department calculated a rate.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will 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 
Korea no later than 45 days after our final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the associated proceeding will be terminated and all securities 
posted will be refunded. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
CBP to assess, upon further instruction by the Department, antidumping 
duties on imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification to Importers

    This notice serves as a final 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. 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.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.


[[Page 59226]]


    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 these 
investigations 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--List of Issues Raised in Case and Rebuttal Briefs

Summary
Background
Discussion of the Issues
    Issue 1: Use of Export Price versus Constructed Export Price
    Issue 2: CEP Offset
    Issue 3: Exporter's Indirect Selling Expenses and Net Reseller 
Profit Margin
    Issue 4: Freight Revenue
    Issue 5: Billing Adjustments
    Issue 6: Classification of Late Payment Fees as Expenses
    Issue 7: Model Match Variables
    Issue 8: Differential Pricing Analysis
    Issue 9: Floor of Zero for Imputed Credit Expenses
    Issue 10: Interest Rate for Imputed Credit for Home Market Sales
    Issue 11: General and Administrative and Financial Expense 
Ratios
Conclusion

[FR Doc. 2014-23393 Filed 9-30-14; 8:45 am]
BILLING CODE 3510-DS-P