[Federal Register Volume 80, Number 245 (Tuesday, December 22, 2015)]
[Notices]
[Pages 79564-79567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32223]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-823]


Countervailing Duty Investigation of Certain Cold-Rolled Steel 
Flat Products From the Russian Federation: Preliminary Affirmative 
Countervailing Duty Determination, Preliminary Negative 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 Russian Federation (Russia). 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: Kristen Johnson (the NLMK Companies) 
and Stephanie Moore (the Severstal Companies), AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4793 and (202) 482-3692, respectively.

[[Page 79565]]


SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The products covered by this investigation are cold-rolled steel 
flat products from Russia. For a complete description of the scope of 
the 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 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 on the Internet at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision 
Memorandum and the electronic version 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, 
Preliminary Negative Critical Circumstances Determination, and 
Alignment of Final Determination With Final Antidumping 
Determination in the Countervailing Duty Investigation of Certain 
Cold-Rolled Steel Flat Products from the Russian Federation,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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New Subsidy Allegation

    On November 4, 2015, ArcelorMittal USA LLC, a petitioner in the 
investigation,\3\ timely filed a new subsidy allegation regarding a 
value added tax (VAT) exemption for steel scrap.\4\ The Department 
determined that Petitioners did not satisfy the initiation standard for 
a VAT program and, therefore, did not initiate an investigation of the 
program.\5\
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    \3\ In addition to ArcelorMittal USA LLC, Petitioners in this 
investigation are United States Steel Corporation, Nucor 
Corporation, Steel Dynamics, Inc., California Steel Industries, and 
AK Steel Corporation.
    \4\ See Letter from ArcelorMittal USA LLC, ``Petitioners' New 
Subsidy Allegation,'' dated November 4, 2015.
    \5\ See Department Memorandum, ``Decision Memorandum on New 
Subsidy Allegation,'' dated December 15, 2015.
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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 Russia based on a request made by 
Petitioners.\6\ 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,\7\ unless 
postponed.
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    \6\ See Letter from Petitioners, ``Countervailing Duty 
Investigations of Certain Cold-Rolled Steel Flat Products from 
Brazil, India, the People's Republic of China, the Republic of 
Korea, and the Russian Federation--Petitioners' Request to Align 
Final Determinations in Countervailing and Antidumping Duty 
Investigations,'' dated December 14, 2015.
    \7\ We note that the current deadline for the final AD 
determination is May 8, 2016, which is a Sunday. 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 Negative Determination of Critical Circumstances

    On October 30, 2015, Petitioners filed a timely critical 
circumstances allegation, pursuant to section 773(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of cold-rolled steel from Russia.\8\ We 
preliminarily determine that critical circumstances do not exist for 
the NLMK Companies, the Severstal Companies, and all other producers/
exporters of subject merchandise in Russia. A discussion of our 
preliminary negative determination of critical circumstances can be 
found in the Preliminary Decision Memorandum at the section, 
``Preliminary Negative Determination of Critical Circumstances.''
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    \8\ See Letter from Petitioners, ``Critical Circumstances 
Allegation,'' dated October 30, 2015.
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. We preliminarily determine that 
countervailable subsidies are being provided with respect to the 
manufacture, production, or exportation of the subject merchandise. We 
preliminarily determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                     Company                           Subsidy rate
------------------------------------------------------------------------
Novolipetsk Steel OJSC, Novex Trading (Swiss)     6.33 percent ad
 S.A., Altai-Koks OJSC, Dolomite OJSC,             valorem.
 Stoilensky OJSC, Studenovskaya (Stagdok) OJSC,
 Trading House LLC, Vtorchermet NLMK LLC,
 Vtorchermet OJSC, and Vtorchermet NLMK Center
 LLC (collectively, the NLMK Companies).
PAO Severstal, Severstal Export GmbH, JSC         0.01 percent ad
 Karelsky Okatysh, AO OLKON, AO Vorkutaugol, and   valorem (de minimis).
 JSC Vtorchermet (collectively, the Severstal
 Companies).
All Others......................................  6.33 percent ad
                                                   valorem.
------------------------------------------------------------------------

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection to suspend liquidation 
of all entries of cold-rolled steel from Russia 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 require a cash 
deposit for such entries of the merchandise in the amounts indicated 
above for all companies other than the Severstal Companies.
    In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not investigated, we apply an ``all others'' rate, which is 
normally

[[Page 79566]]

calculated by weighting the subsidy rates of the individual companies 
as respondents by those companies' exports of the subject merchandise 
to the United States. Under section 705(c)(5)(A)(i) of the Act, the all 
others rate should exclude zero and de minimis rates or any rates based 
entirely on facts otherwise available. In this investigation, the only 
rate that is not de minimis or based entirely on facts otherwise 
available is the rate calculated for the NLMK Companies. Consequently, 
the rate calculated for the NLMK Companies is assigned as the all 
others rate.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

International Trade Commission Notification

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

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\9\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\10\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \9\ See 19 CFR 351.224(b).
    \10\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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    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. Preliminary Negative Determination of Critical Circumstances
VI. Alignment
VII. Injury Test
VIII. Subsidies Valuation
IX. Analysis of Programs
X. Disclosure and Public Comment
XI. 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 these 
investigation unless specifically excluded. The following products 
are outside of and/or specifically excluded from the scope of these 
investigation:

 Ball bearing steels; \11\
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    \11\ 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; \12\
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    \12\ 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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[[Page 79567]]

 Silico-manganese steel; \13\
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    \13\ 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.\14\
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    \14\ See 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.\15\
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    \15\ See 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.''

    The products subject to these investigation 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 investigation 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 
U.S. Customs purposes only. The written description of the scope of 
the investigation is dispositive.

[FR Doc. 2015-32223 Filed 12-21-15; 8:45 am]
 BILLING CODE 3510-DS-P