[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35308-35310]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12962]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-027]


Countervailing Duty Investigation of Certain Corrosion-Resistant 
Steel Products From the People's Republic of China: Final Affirmative 
Determination, and Final Affirmative Critical Circumstances 
Determination, in Part

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 certain corrosion-resistant steel products (corrosion-resistant 
steel) from the People's Republic of China (the PRC) as provided in 
section 705 of the Tariff Act of 1930, as amended (the Act). For 
information on the estimated subsidy rates, see the ``Final 
Determination'' section of this notice. The period of investigation is 
January 1, 2014, through December 31, 2014.

DATES: Effective Date: June 2, 2016.

FOR FURTHER INFORMATION CONTACT: Emily Halle or David Lindgren, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-0176 
or (202) 482-3870, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on November 
6, 2015.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Final Decision Memorandum.\2\ The Final 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 Final 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Final Decision Memorandum and 
the electronic version are identical in content.
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    \1\ See Countervailing Duty Investigation of Certain Corrosion-
Resistant Steel Products from the People's Republic of China: 
Preliminary Affirmative Determination, 80 FR 68843 (November 6, 
2015) (Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Corrosion-Resistant Steel Products from the People's 
Republic of China,'' (Final Decision Memorandum), dated concurrently 
with this determination and hereby adopted by this notice.
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2014, through December 31, 2014.

Scope Comments

    In accordance with the Preliminary Scope Determination,\3\ the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.
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    \3\ See Memorandum to Gary Taverman, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Corrosion-Resistant Steel Products From the People's 
Republic of China, India, Italy, the Republic of Korea, and Taiwan: 
Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated December 21, 2015 (Preliminary Scope 
Decision Memorandum). See also Memorandum to the File, ``Certain 
Corrosion-Resistant Steel Products From the People's Republic of 
China, India, Italy, the Republic of Korea, and Taiwan: Correction 
to Preliminary Determination Scope Memorandum,'' January 29, 2016.
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    For a summary of the product coverage comments and rebuttal 
responses submitted to the record of this final determination, and 
accompanying discussion and analysis of all comments timely received, 
see the Final Scope Decision Memorandum.\4\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
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    \4\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Scope Comments Decision Memorandum for the Final Determinations,'' 
dated concurrently with this notice.
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Scope of the Investigation

    The product covered by this investigation is corrosion-resistant 
steel from the PRC. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix II 
of this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Final Decision Memorandum. A list of the issues that 
parties raised, and to which we responded in the Final Decision 
Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available

    The Department, in making these findings, relied, in part, on facts 
available and, because one or more respondents failed to cooperate by 
not acting to the best of their ability, we made adverse inferences.\5\ 
For the final determination, we are basing the countervailing duty 
(CVD) rates for Angang Group Hong Kong Company Ltd. (Angang), Baoshan 
Iron & Steel Co., Ltd. (Baoshan), Duferco S.A. (Duferco), Changshu 
Everbright Material Technology (Everbright), and Handan Iron & Steel 
Group (Handan) on facts otherwise available, pursuant to sections 
776(a)(2)(A) and (C) of the

[[Page 35309]]

Tariff Act of 1930, as amended (the Act). Further, because Angang, 
Baoshan, Duferco, Everbright and Handan did not cooperate to the best 
of their ability in this investigation, we also determine that an 
adverse inference is warranted, pursuant to section 776(b) of the Act. 
For further information, see the section ``Use of Facts Otherwise 
Available and Adverse Inferences,'' in the Final Decision Memorandum.
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    \5\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Final Decision Memorandum and the Final Analysis Memorandum.\6\
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    \6\ See Final Decision Memorandum; see also Memorandum, ``Final 
Determination Analysis for Yieh Phui (China) Technomaterial Co., 
Ltd.,'' dated concurrently with this determination and hereby 
adopted by this notice.
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Final Affirmative Determination of Critical Circumstances, in Part

    Prior to the Preliminary Determination, the Department found that 
critical circumstances exist with respect to imports of corrosion-
resistant steel from the PRC for Angang, Baoshan, Duferco, Everbright 
and Handan.\7\ Upon further analysis of the data and comments submitted 
by interested parties following the Preliminary Determination, we are 
not modifying our findings for the Final Determination.\8\ 
Specifically, in accordance with section 705(a)(2) of the Act, we find 
that critical circumstances exist with respect to imports from Angang, 
Baoshan, Duferco, Everbright and Handan, but do not exist for Yieh Phui 
(China) Technomaterial Co., Ltd. (YPC) and all other producers or 
exporters.
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    \7\ See Antidumping and Countervailing Duty Investigations of 
Corrosion-Resistant Steel Products From India, Italy, the People's 
Republic of China, the Republic of Korea, and Taiwan: Preliminary 
Determinations of Critical Circumstances, 80 FR 68504 (November 5, 
2015).
    \8\ For a full description of the methodology and results of our 
analysis, see the Final Decision Memorandum.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established rates for YPC (the only individually investigated exporter/
producer of the subject merchandise that participated in this 
investigation), and for Angang, Baoshan, Duferco, Everbright and Handan 
(which were assigned a rate based on adverse facts available (AFA)).
    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A)(i) 
of the Act, for companies not individually investigated, we apply an 
``all-others'' rate, which is normally calculated by weight averaging 
the subsidy rates of the individual companies selected for individual 
examination with those companies' export sales of the subject 
merchandise to the United States, excluding any zero and de minimis 
rates calculated for the exporters and producers individually 
investigated, and any rates determined entirely under section 776 of 
the Act. Consistent with section 705(c)(5)(A)(i) of the Act, we 
therefore have excluded the AFA rate assigned to Angang, Baoshan, 
Duferco, Everbright, and Handan from the all-others rate.
    Because the only individually calculated rate that is not zero, de 
minimis, or based on facts otherwise available is the rate calculated 
for YPC, in accordance with section 705(c)(5)(A)(i) of the Act, the 
rate calculated for YPC is assigned as the ``all-others'' rate. The 
estimated countervailable subsidy rates are summarized in the table 
below.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Yieh Phui (China) Technomaterial Co., Ltd...................       39.05
Angang Group Hong Kong Company Ltd..........................      241.07
Baoshan Iron & Steel Co., Ltd...............................      241.07
Duferco S.A., Hebei Iron & Steel Group, and Tangshan Iron         241.07
 and Steel Group Co., Ltd...................................
Changshu Everbright Material Technology.....................      241.07
Handan Iron & Steel Group...................................      241.07
All-Others..................................................       39.05
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after August 8, 2015 
(for those entities for which we found critical circumstances exist) or 
on or after November 6, 2015, the date of publication of the 
Preliminary Determination in the Federal Register (for all entities for 
which we did not find critical circumstances exist). In accordance with 
section 703(d) of the Act, we issued instructions to CBP to discontinue 
the suspension of liquidation for CVD purposes for subject merchandise 
entered, or withdrawn from warehouse, on or after March 4, 2016, but to 
continue the suspension of liquidation of all entries from August 8, 
2015, or November 6, 2015, as the case may be, through March 3, 2016.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
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 
subject 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 that 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.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice serves 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 or 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 subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.


[[Page 35310]]


    Dated: May 24, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances, in Part
IV. Scope of the Investigation
V. Application of the Countervailing Duty Law to Imports From the 
PRC
VI. Subsidies Valuation Information
VII. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether Respondent's Producers of Inputs Are 
``Authorities''
    Comment 2: Whether Inputs for LTAR Are Specific
    Comment 3: Whether To Use a Tier One Benchmark To Determine the 
Adequacy of Remuneration for Inputs for LTAR
    Comment 4: Whether the Provision of Electricity for LTAR Is 
Countervailable
    Comment 5: Whether the GOC Provided Policy Loans to YPC During 
the POI
    Comment 6: Whether the Export Buyer's Credit Program Was Used by 
Respondent
    Comment 7: Correcting VAT in the Hot-Rolled Steel and Primary 
Aluminum Benchmarks
    Comment 8: Whether To Apply AFA to YCL's Sales From Other PRC 
Producers of Corrosion-Resistant Steel
XI. Recommendation

Appendix II

Scope of the Investigation

    The products covered by this investigation are certain flat-
rolled steel products, either clad, plated, or coated with 
corrosion-resistant metals such as zinc, aluminum, or zinc-, 
aluminum-, nickel- or iron-based alloys, whether or not corrugated 
or painted, varnished, laminated, or coated with plastics or other 
non-metallic substances in addition to the metallic coating. The 
products covered include coils that have a 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 and high strength low alloy (``HSLA'') steels. 
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.
    Furthermore, this scope also includes Advanced High Strength 
Steels (``AHSS'') and Ultra High Strength Steels (``UHSS''), both of 
which are considered high tensile strength and high elongation 
steels.
    Subject merchandise also includes corrosion-resistant 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 in-
scope corrosion resistant 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:
     Flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin free steel''), 
whether or not painted, varnished or coated with plastics or other 
non-metallic substances in addition to the metallic coating;
     Clad products in straight lengths of 4.7625 mm or more 
in composite thickness and of a width which exceeds 150 mm and 
measures at least twice the thickness; and
     Certain clad stainless flat-rolled products, which are 
three-layered corrosion-resistant flat-rolled steel products less 
than 4.75 mm in composite thickness that consist of a flat-rolled 
steel product clad on both sides with stainless steel in a 20%-60%-
20% ratio.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') under item numbers: 7210.30.0030, 7210.30.0060, 
7210.41.0000, 7210.49.0030, 7210.49.0091, 7210.49.0095, 
7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 
7212.40.1000, 7212.40.5000, 7212.50.0000, and 7212.60.0000.
    The products subject to the investigation may also enter under 
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000, 
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 
7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090, 
7226.99.0110, 7226.99.0130, 7226.99.0180, 7228.60.6000, 
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. 2016-12962 Filed 6-1-16; 8:45 am]
 BILLING CODE 3510-DS-P