[Federal Register Volume 81, Number 100 (Tuesday, May 24, 2016)]
[Notices]
[Pages 32725-32728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12186]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-029]


Certain Cold-Rolled Steel Flat Products From the People's 
Republic of China: Final Affirmative Determination of Sales at Less 
Than Fair Value, and Final Affirmative Determination of Critical 
Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
certain cold-rolled steel flat products (cold-rolled steel) from the 
People's Republic of China (the PRC) are being, or are likely to be, 
sold in the United States at less than fair value (LTFV), as provided 
in section 735 of the Tariff Act of 1930, as amended (the Act). The 
period of investigation is January 1, 2015, through June 30, 2015. The 
estimated weighted-average dumping margin of sales at LTFV is shown in 
the ``Final Determination'' section of this notice.

DATES: Effective Date: May 24, 2016.

FOR FURTHER INFORMATION CONTACT: Scott Hoefke or Robert James, 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) 482-4947 
or (202) 482-0679, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On March 7, 2016, the Department published its preliminary 
affirmative determination of sales at LTFV and preliminary affirmative 
determination of critical circumstance in LTFV investigation of cold-
rolled steel from the PRC.\1\ We invited interested parties to comment 
on our preliminary determinations. We only received comments regarding 
the scope of this investigation. No interested party requested a 
hearing.
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    \1\ See Antidumping Duty Investigation of Certain Cold-Rolled 
Steel Flat Products From the People's Republic of China: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value, and 
Preliminary Affirmative Determination of Critical Circumstances, 81 
FR 11751 (March 7, 2016) (Preliminary Determination).
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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 from the PRC. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I.
    Since the Preliminary Determination, eight interested parties 
(i.e., JFE Steel Corporation, Electrolux Home Products, Inc., 
Electrolux Home Care Products, Inc., ArcelorMittal USA LLC, AK Steel 
Corporation, Nucor Corporation, Steel Dynamics Inc., and .United States 
Steel Corporation) commented on the scope of the investigation. The 
Department reviewed these comments and has made no changes to the scope 
of the investigation. For further discussion, see the Final Scope 
Comments Memorandum.\2\ The scope in Appendix I reflects the final 
unmodified scope language as it appeared in the Preliminary 
Determination.
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    \2\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Cold-Rolled Steel Flat Products From Brazil, the People's 
Republic of China, India, Japan, the Republic of Korea, the Russian 
Federation, and the United Kingdom: Final Scope Comments Decision 
Memorandum,'' dated concurrently with this final determination 
(Final Scope Comments Memorandum).
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Verification

    The only respondent in the antidumping investigation of cold-rolled 
steel from the PRC, the PRC-wide entity, did not provide information 
requested by the Department. Hence, no verification was conducted.

Analysis of Comments Received and Changes Since the Preliminary 
Determination

    We made no changes to the Preliminary Determination because we 
received no comments pertaining to the Preliminary Determination.

Final Affirmative Determination of Critical Circumstances

    In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, 
we preliminarily found critical circumstances exist with respect to 
imports of certain cold-rolled steel flat products from the PRC-wide 
entity.\3\ As stated above, the Department did not receive any comments 
concerning the preliminary determination. Thus, for the

[[Page 32726]]

final determination, we continue to find that, in accordance with 
section 735(a)(3) of the Act and 19 CFR 351.206, critical circumstances 
exist with respect to the PRC-wide entity.
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    \3\ See Preliminary Determination.
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Use of Adverse Facts Available

    As stated in the Preliminary Determination, the PRC-wide entity 
failed to cooperate to the best of its ability.\4\ Accordingly, 
pursuant to sections 776(a)(2)(A), (B), and (C) and section 776(b) of 
the Act, we find it appropriate to assign the estimated weighted-
average dumping margin in the table below, which is based on total 
adverse facts available.\5\
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    \4\ See Id., and accompanying Preliminary Decision Memorandum at 
9-13.
    \5\ Id.
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Combination Rates

    In the Initiation Notice,\6\ the Department stated that it would 
calculate combination rates for PRC respondents that are eligible for 
separate rate in this investigation. This practice is described in 
Policy Bulletin 05.1, available at http://enforcement.trade.gov/policy/index.html. Because the Department has not granted a separate rate to 
any PRC respondent, the Department has not calculated combination rates 
for any PRC respondents.
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    \6\ See Certain Cold-Rolled Steel Flat Products from Brazil, the 
People's Republic of China, India, Japan, the Republic of Korea, the 
Netherlands, the Russian Federation, and the United Kingdom: 
Initiation of Less-Than-Fair-Value Investigations, 80 FR 51198 
(August 24, 2015) (Initiation Notice).
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Final Determination

    As stated above, we made no changes to our affirmative preliminary 
LTFV determination; therefore, we continue to determine the following 
estimated weighted-average dumping margin exists for the PRC wide-
entity during the period January 1, 2015, through June 30, 2015:

------------------------------------------------------------------------
                  Company                           Dumping rate
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PRC-Wide Entity...........................  265.79 percent
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(4)(A) of the Act, for the final 
determination, we will instruct U.S. Customs and Border Protection 
(CBP) to continue to suspend liquidation of all entries of cold-rolled 
steel from the PRC as described in the ``Scope of the Investigation'' 
section which were entered, or withdrawn from warehouse, for 
consumption 90 days prior to the date of publication of the Preliminary 
Determination, pursuant to section 733(e)(2) of the Act.
    As we stated in the Preliminary Determination, and consistent with 
our practice, where the product under investigation is also subject to 
a concurrent countervailing duty investigation, we will instruct CBP to 
require a cash deposit equal to the amount by which the normal value 
exceeds the export price or constructed export price, adjusted where 
appropriate for export subsidies and estimated domestic subsidy pass-
through.\7\ With respect to the PRC-wide entity, we find that an 
adjustment for export subsidies of 66.03 percent \8\ is warranted 
because this is the countervailing duty rate attributable to export 
subsidies included in the countervailing duty rate to which all entries 
from the PRC-wide entity are currently subject. We are not adjusting 
the final determination for estimated domestic subsidy pass-through 
because we have no basis upon to make such an adjustment. Thus, we will 
offset the PRC-wide rate of 265.79 by the countervailing duty rate 
attributable to export subsidies (i.e., 66.03 percent) to calculate the 
cash deposit ad valorem rate for the PRC-wide entity of 199.76 
percent.\9\ The suspension of liquidation instructions will remain in 
effect until further notice.
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    \7\ See Preliminary Determination.
    \8\ See sections 772(c)(1)(C) and 777A(f) of the Act, 
respectively. Unlike in administrative reviews, the Department makes 
an adjustment for export subsidies in an LTFV investigation not in 
the calculation of the weighted-average dumping margin, but in the 
cash deposit instructions issued to U.S. Customs and Border 
Protection. See Notice of Final Determination of Sales at Less Than 
Fair Value, and Negative Determination of Critical Circumstances: 
Certain Lined Paper Products from India, 71 FR 45012 (August 8, 
2006), and accompanying Issues and Decision Memorandum at comment 1. 
The following programs are export specific in the concurrent 
countervailing duty investigation: Export Loans; Preferential 
Lending to Cold-Rolled Steel Producers and Exporters Classified As 
``Honorable Enterprises''; Preferential Income Tax Subsidies for 
Foreign Invested Enterprises--Export Oriented FIEs; Programs to 
Rebate Antidumping Legal Fees; Export Assistance Grants; Subsidies 
for Development of Famous Export Brands and China World Top Brands; 
Sub-Central Government Programs to Promote Famous Export Brands and 
China World Top Brands; Export Interest Subsidies; Export Seller's 
Credits; Export Buyer's Credits; Export Credit Insurance Subsidies; 
Export Credit Guarantees''. See Countervailing Duty Investigation of 
Certain Cold-Rolled Steel Flat Products From the People's Republic 
of China: Final Affirmative Determination, Final Partial Affirmative 
Critical Circumstances Determination, and accompanying Issues and 
Decision Memorandum. The final determination in this companion CVD 
proceeding is being released concurrently with this final 
determination.
    \9\ The cash deposit rate reflecting the export subsidy offset 
will be in effect until the countervailing duty provisional measures 
expire (i.e., 120 days after the publication of the preliminary 
determination of companion countervailing duty investigation).
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Disclosure

    We described the calculations used to determine the estimated 
weighted-average dumping margins based on adverse facts available, in 
the Preliminary Determination. We made no changes to our calculations 
since the Preliminary Determination. Thus, no additional disclosure of 
calculations is necessary for this final determination.

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our final affirmative 
determination of sales at LTFV and final affirmative determination of 
critical circumstances. 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 cold-rolled 
steel from the PRC no later than 45 days after our final determination. 
If the ITC determines that such injury does not exist, this proceeding 
will be terminated and all securities posted will be refunded or 
canceled. 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 all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to the 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. Timely written notification of 
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.
    We are issuing and publishing this determination in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).


[[Page 32727]]


    Dated: May 16, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

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:
    [middot] Ball bearing steels; \10\
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    \10\ 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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    [middot] Tool steels; \11\
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    \11\ 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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    [middot] Silico-manganese steel; \12\
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    \12\ 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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    [middot] 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.\13\
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    \13\ 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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    [middot] 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.\14\
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    \14\ 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, December 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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    The products subject to this 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, 7211.23.6090, 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, 
7225.50.8080, 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.

[[Page 32728]]

    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. 2016-12186 Filed 5-23-16; 8:45 am]
 BILLING CODE 3510-DS-P