[Federal Register Volume 80, Number 245 (Tuesday, December 22, 2015)]
[Notices]
[Pages 79558-79561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32215]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-030]


Countervailing Duty Investigation of Certain Cold-Rolled Steel 
Flat Products From the People's Republic of China: Preliminary 
Affirmative Determination, Preliminary Partial Affirmative Critical 
Circumstances Determination, and Alignment of Final Determination With 
Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers/exporters of certain cold-rolled steel flat products (cold-
rolled steel) from the People's Republic of China (the PRC). The period 
of investigation is January 1, 2014, through December 31, 2014. We 
invite interested parties to comment on this preliminary determination.

DATES: Effective Date: December 22, 2015.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or John Corrigan, 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 
or (202) 482-7438, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The products covered by this investigation are cold-rolled steel 
flat products from the PRC. For a complete description of the scope of 
this investigation, see Appendix II.

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

[[Page 79559]]

financial contribution by an ``authority'' that gives rise to a benefit 
to the recipient, and that the subsidy is specific.\1\ For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.\2\ A list of topics discussed 
in the Preliminary Decision Memorandum is included as Appendix I to 
this notice. 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 (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Central 
Records Unit, room B8024 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 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.
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Decision Memorandum for the Preliminary Affirmative Determination 
in the Countervailing Duty Investigation of Certain Cold-Rolled 
Steel Flat Products from the People's Republic of China,'' dated 
concurrently with this notice (Preliminary Decision Memorandum).
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    The Department notes that, in making this preliminary 
determination, we relied, in part, on facts available and, because 
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 
with respect to those respondents.\3\ For further information, see 
``Use of Facts Otherwise Available and Adverse Inferences'' in the 
accompanying Preliminary Decision Memorandum.
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    \3\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, 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 
cold-rolled steel from the PRC based on a request made by 
Petitioners.\4\ 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 May 8, 2016,\5\ unless 
postponed.
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    \4\ AK Steel Corporation, ArcelorMittal USA EEC, Nucor 
Corporation, Steel Dynamics, Inc., and the United States Steel 
Corporation (collectively, Petitioners); see also Letter from 
Petitioners dated, December 14, 2015.
    \5\ We note that the current deadline for the final AD 
determination is May 8, 2016, which is a Saturday. Pursuant to 
Department practice, the signature date will be the next business 
day, which is Monday, May 9, 2016. 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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Preliminary Affirmative Determination of Critical Circumstances

    On October 30, 2015, Petitioners filed a timely critical 
circumstances allegation, pursuant to section 703(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of certain cold-rolled steel flat products from the 
PRC.\6\ We preliminarily determine, on the basis of adverse facts 
available, that critical circumstances exist for Angang Group Hong Kong 
Co., Ltd. (Angang Hong Kong), Benxi Iron and Steel (Group) Special 
Steel Co., Ltd. (Benxi Iron and Steel), and Qian'an Golden Point 
Trading Co., Ltd. (Qian'an Golden Point). We reached a negative 
preliminary critical circumstances determination for all other 
producers/exporters of cold-rolled steel from the PRC because we do not 
find massive imports pursuant to 19 CFR 351.206(h)-(i). A discussion of 
our determination can be found in the Preliminary Decision Memorandum 
at the section, ``Preliminary Determination of Critical 
Circumstances.''
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    \6\ See Letter from Petitioners dated October 30, 2015.
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Preliminary Determination and Suspension of Liquidation

    In accordance with sections 776(a)(1), 776(a)(2), and 776(b) of the 
Act, we applied facts otherwise available with an adverse inference, to 
assign countervailable subsidy rates for non-cooperative mandatory 
respondents Angang Hong Kong, Benxi Iron and Steel, and non-cooperative 
exporter Qian'an Golden Point. With respect to the all-others rate, 
section 705(c)(5)(A)(ii) of the Act provides that if the 
countervailable subsidy rates established for all exporters and 
producers individually investigated are determined entirely in 
accordance with 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. In this case, the rates 
assigned to Angang Hong Kong, Benxi Iron and Steel, and Qian'an Golden 
Point are based entirely on facts otherwise available, with an adverse 
inference, under section 776 of the Act. There is no other information 
on the record with which to determine an all-others rate. As a result, 
in accordance with section 705(c)(5)(A)(ii) of the Act, we have 
established the all-others rate by applying the countervailable subsidy 
rates for mandatory respondents Angang Hong Kong and Benxi Iron and 
Steel, which are the same as the rate applied to non-selected exporter 
Qian'an Golden Point. The preliminary estimated countervailable subsidy 
rates are summarized in the table below.

------------------------------------------------------------------------
                         Company                           Subsidy  rate
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Angang Group Hong Kong Co., Ltd.........................          227.29
Benxi Iron and Steel (Group) Special Steel Co., Ltd.....          227.29
Qian'an Golden Point Trading Co., Ltd...................          227.29
All-Others..............................................          227.29
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    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of cold-rolled steel from the PRC, as 
described in the ``Scope of the Investigation,'' 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. Moreover, because we preliminarily find that critical 
circumstances exist for Angang Hong Kong, Benxi Iron and Steel, and 
Qian'an Golden Point, in accordance with section 703(e)(2)(A) of the 
Act, we are directing CBP to apply the suspension of liquidation to any 
unliquidated entries entered, or withdrawn from warehouse for 
consumption by these companies, on or after the date which is 90 days 
prior to the date of publication of this notice in the Federal 
Register.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our preliminary 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

[[Page 79560]]

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.

Public Comment

    For a schedule of the deadlines for filing case briefs, rebuttal 
briefs, and hearing requests, see the Preliminary Decision Memorandum.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

     Dated: December 15, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Application of the CVD Law to Imports From the PRC
VII. Alignment
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Calculation of the All-Others Rate
X. Preliminary Determination of Critical Circumstances
XI. ITC Notification
XII. Public Comment
XIII. Conclusion

Appendix II

Scope of the Investigation

    The products covered by this investigation are certain cold-
rolled (cold-reduced), flat-rolled steel products, whether or not 
annealed, painted, varnished, or coated with plastics or other non-
metallic substances. The products covered do not include those that 
are clad, plated, or coated with metal. The products covered include 
coils that have a width or other lateral measurement (``width'') of 
12.7 mm or greater, regardless of form of coil (e.g., in 
successively superimposed layers, spirally oscillating, etc.). The 
products covered also include products not in coils (e.g., in 
straight lengths) of a thickness less than 4.75 mm and a width that 
is 12.7 mm or greater and that measures at least 10 times the 
thickness. The products covered also include products not in coils 
(e.g., in straight lengths) of a thickness of 4.75 mm or more and a 
width exceeding 150 mm and measuring at least twice the thickness. 
The products described above may be rectangular, square, circular, 
or other shape and include products of either rectangular or non-
rectangular cross-section where such cross-section is achieved 
subsequent to the rolling process, i.e., products which have been 
``worked after rolling'' (e.g., products which have been beveled or 
rounded at the edges). For purposes of the width and thickness 
requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above, and
    (2) Where the width and thickness vary for a specific product 
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape, 
etc.), the measurement at its greatest width or thickness applies.
    Steel products included in the scope of this investigation are 
products in which: (1) Iron predominates, by weight, over each of 
the other contained elements; (2) the carbon content is 2 percent or 
less, by weight; and (3) none of the elements listed below exceeds 
the quantity, by weight, respectively indicated:

 2.50 percent of manganese, or
 3.30 percent of silicon, or
 1.50 percent of copper, or
 1.50 percent of aluminum, or
 1.25 percent of chromium, or
 0.30 percent of cobalt, or
 0.40 percent of lead, or
 2.00 percent of nickel, or
 0.30 percent of tungsten (also called wolfram), or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), or
 0.30 percent of vanadium, or
 0.30 percent of zirconium

    Unless specifically excluded, products are included in this 
scope regardless of levels of boron and titanium.
    For example, specifically included in this scope are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-
free (IF)) steels, high strength low alloy (HSLA) steels, motor 
lamination steels, Advanced High Strength Steels (AHSS), and Ultra 
High Strength Steels (UHSS). IF steels are recognized as low carbon 
steels with micro-alloying levels of elements such as titanium and/
or niobium added to stabilize carbon and nitrogen elements. HSLA 
steels are recognized as steels with micro-alloying levels of 
elements such as chromium, copper, niobium, titanium, vanadium, and 
molybdenum. Motor lamination steels contain micro-alloying levels of 
elements such as silicon and aluminum. AHSS and UHSS are considered 
high tensile strength and high elongation steels, although AHSS and 
UHSS are covered whether or not they are high tensile strength or 
high elongation steels.
    Subject merchandise includes cold-rolled steel that has been 
further processed in a third country, including but not limited to 
annealing, tempering, painting, varnishing, trimming, cutting, 
punching, and/or slitting, or any other processing that would not 
otherwise remove the merchandise from the scope of the investigation 
if performed in the country of manufacture of the cold-rolled steel.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this 
investigation unless specifically excluded. The following products 
are outside of and/or specifically excluded from the scope of this 
investigation:
     Ball bearing steels; \7\
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    \7\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.
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     Tool steels; \8\
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    \8\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) more than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
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     Silico-manganese steel; \9\
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    \9\ Silico-manganese steel is defined as steels containing by 
weight: (i) not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
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     Grain-oriented electrical steels (GOES) as defined in 
the final determination of the U.S. Department of Commerce in Grain-
Oriented Electrical Steel From Germany, Japan, and Poland.\10\
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    \10\ Grain-Oriented Electrical Steel From Germany, Japan, and 
Poland: Final Determinations of Sales at Less Than Fair Value and 
Certain Final Affirmative Determination of Critical Circumstances, 
79 FR 42,501, 42,503 (Dep't of Commerce, July 22, 2014). This 
determination defines grain-oriented electrical steel as ``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.''
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     Non-Oriented Electrical Steels (NOES), as defined in 
the antidumping orders issued by the U.S. Department of Commerce in 
Non-Oriented Electrical Steel From the People's Republic of China, 
Germany, Japan, the Republic of Korea, Sweden, and Taiwan.\11\
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    \11\ Non-Oriented Electrical Steel From the People's Republic of 
China, Germany, Japan, the Republic of Korea, Sweden, and Taiwan: 
Antidumping Duty Orders, 79 FR 71,741, 71,741-42 (Dep't of Commerce, 
Dec. 3, 2014). The orders define NOES as ``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.''

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[[Page 79561]]

    The products subject to these investigations are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7209.15.0000, 7209.16.0030, 
7209.16.0060, 7209.16.0070, 7209.16.0091, 7209.17.0030, 
7209.17.0060, 7209.17.0070, 7209.17.0091, 7209.18.1530, 
7209.18.1560, 7209.18.2510, 7209.18.2520, 7209.18.2580, 
7209.18.6020, 7209.18.6090, 7209.25.0000, 7209.26.0000, 
7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000, 
7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500, 
7211.23.6030, 7211.23.6060, 7211.23.6075, 7211.23.6085, 
7211.29.2030, 7211.29.2090, 7211.29.4500, 7211.29.6030, 
7211.29.6080, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
7225.50.6000, 7225.50.8015, 7225.50.8085, 7225.99.0090, 
7226.92.5000, 7226.92.7050, and 7226.92.8050. The products subject 
to the investigations may also enter under the following HTSUS 
numbers: 7210.90.9000, 7212.50.0000, 7215.10.0010, 7215.10.0080, 
7215.50.0016, 7215.50.0018, 7215.50.0020, 7215.50.0061, 
7215.50.0063, 7215.50.0065, 7215.50.0090, 7215.90.5000, 
7217.10.1000, 7217.10.2000, 7217.10.3000, 7217.10.7000, 
7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090, 
7225.19.0000, 7226.19.1000, 7226.19.9000, 7226.99.0180, 
7228.50.5015, 7228.50.5040, 7228.50.5070, 7228.60.8000,and 
7229.90.1000.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2015-32215 Filed 12-21-15; 8:45 am]
BILLING CODE 3510-DS-P