[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35323-35326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12967]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-864]


Countervailing Duty Investigation of Certain Corrosion-Resistant 
Steel Products From India: Final Affirmative Determination

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 India as provided in section 705 of the Tariff 
Act of 1930, as amended (the ``Act''). For information on the 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: Andrew Devine, Paul Walker, or Matthew 
Renkey, AD/CVD Operations, Office V, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone 
202-482-0238, 202-482-0413, or 202-482-2312, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the Preliminary Determination on November 
6, 2015,\1\ and placed the Post-Preliminary Memorandum on the record of 
this investigation on March 9, 2016.\2\ A summary of the events that 
occurred since the post-preliminary analysis, as well verification and 
a full discussion of the issues raised by parties for this final 
determination, may be found in the Issues and Decision Memo.\3\ The 
Issues and Decision Memo 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 Issues and Decision Memorandum can be accessed directly 
at http://trade.gov/enforcement. The signed Issues and Decision Memo 
and the electronic versions of the Issues and Decision Memo are 
identical in content.
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    \1\ See Countervailing Duty Investigation of Certain Corrosion-
Resistant Steel Products from India: Preliminary Affirmative 
Determination, 80 FR 68854 (November 6, 2015) (``Preliminary 
Determination'').
    \2\ See Memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, re: ``Post-Preliminary Analysis for the 
Countervailing Duty Investigation of Certain Corrosion Resistant 
Steel from India,'' dated March 9, 2016 (``Post-Preliminary 
Memorandum'').
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Issues and Decision Memorandum for the Final Affirmative 
Determination in the Countervailing Duty Investigation of Certain 
Corrosion Resistant Steel from India,'' dated concurrently with this 
notice (``Issues and Decision Memo'').
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    As explained in the memorandum from the Acting Assistant Secretary 
for Enforcement and Compliance, the Department has exercised its 
discretion to toll all administrative deadlines due to the closure of 
the Federal Government. All deadlines in this segment of the proceeding 
have been extended by four business days. The revised deadline for the 
final determination is now May 24, 2016.\4\
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    \4\ See Memorandum to the Record from Ron Lorentzen, Acting 
Assistant Secretary for Enforcement & Compliance, regarding 
``Tolling of Administrative Deadlines As a Result of the Government 
Closure During Snowstorm Jonas,'' dated January 27, 2016.
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Scope of the Investigation

    The products covered by this investigation are corrosion-resistant 
steel products from India. For a complete description of the scope of 
this investigation, see Appendix II. The Department did not receive 
comments regarding the scope of this investigation.

Scope Comments

    In accordance with the Preliminary Scope Determination,\5\ the 
Department

[[Page 35324]]

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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    \5\ 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,'' dated 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.\6\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
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    \6\ 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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Methodology

    The Department is conducting this countervailing duty (``CVD'') 
investigation in accordance with section 701 of the Act. For each of 
the subsidy programs found countervailable, we 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.\7\ For a full description of the methodology underlying our 
conclusions, see the Issues and Decision Memo.
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    \7\ 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.
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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 Issues and Decision Memo. A list of the issues that 
parties raised, and to which we responded in the Issues and Decision 
Memo, is attached to this notice at Appendix I.

Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available and, because JSW Steel Limited did not act to the 
best of its 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.\8\ For further 
information, see the section ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the accompanying Issues and Decision Memo.
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    \8\ 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, we made certain changes to the subsidy program rate 
calculations since the Preliminary Determination. For a discussion of 
these changes, see the Issues and Decision Memo.

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated. In accordance with section 
705(c)(5)(A) of the Act, for companies not individually investigated, 
we apply an ``all-others'' rate, which is normally calculated by 
weighting the subsidy rates of the individual companies selected as 
mandatory respondents by those companies' exports of the subject 
merchandise to the United States. Under section 705(c)(5)(i) of the 
Act, the all-others rate excludes zero and de minimis rates calculated 
for the exporters and producers individually investigated as well as 
rates based entirely on facts otherwise available. Where the rates for 
the individually investigated companies are all zero or de minimis, or 
determined entirely using facts otherwise available, section 
705(c)(5)(A)(ii) of the Act instructs the Department to establish an 
all-others rate using ``any reasonable method.'' Where the 
countervailable subsidy rates for all of the individually investigated 
respondents are zero or de minimis or are based on total AFA, the 
Department's practice, pursuant to 705(c)(5)(A)(ii), is to calculate 
the all others rate based on a simple average of the zero or de minimis 
margins and the margins based on total AFA. Pursuant to section 
705(c)(5)(A)(i) of the Act, we have not calculated the ``all-others'' 
rate by weight averaging the rates of the two individually investigated 
respondents, because doing so risks disclosure of proprietary 
information. Therefore, and consistent with the Department's practice, 
for the ``all-others'' rate, we calculated a simple average of the two 
responding firms' rates.\9\
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    \9\ See, e.g., Countervailing Duty Investigation of Boltless 
Steel Shelving Units Prepackaged for Sale from the People's Republic 
of China: Preliminary Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination, 80 FR 5089 
(January 30, 2015), unchanged in Boltless Steel Shelving Units 
Prepackaged for Sale from the People's Republic of China: Amended 
Final Affirmative Countervailing Duty Determination and 
Countervailing Duty Order, 80 FR 64745 (October 24, 2015).

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/Producer                        (percent)
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JSW Steel Limited and JSW Steel Coated Products Limited.           29.46
Uttam Galva Steels Limited and Uttam Value Steels                   8.00
 Limited................................................
All Others..............................................           18.73
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (``CBP'') to suspend liquidation of entries of merchandise 
under consideration from India that were entered or withdrawn from 
warehouse, for consumption, on or after November 6, 2015, which is the 
publication date in the Federal Register of the Preliminary 
Determination. 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 5, 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.

International Trade Commission 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 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.

[[Page 35325]]

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice will serve as the only reminder to parties subject to an 
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 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.

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

Appendix I--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. List of Issues
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Calculation of the All-Others Rate
IX. Analysis of Comments
    Comment 1: Whether the AAP Is a Countervailable Subsidy
    Comment 2: Whether the DFIA Program Is a Countervailable Subsidy
    Comment 3: Whether the DDB Program Is a Countervailable Subsidy
    Comment 4: Whether the EPCGS Is a Countervailable Subsidy
    Comment 5: Whether the Various State Government of Maharashtra 
Programs Are Countervailable Subsidies
    Comment 6: Whether Status Holder Incentive Scrips (``SHIS'') 
Purchased From Third Parties Confer a Countervailable Subsidy
    Comment 7: Double-Counting of the Status Certificate Program 
(``SCP'') and SHIS
    Comment 8: Whether UVSL Was Required To File a Questionnaire 
Response
    Comment 9: Treatment of Indrajit Power Private Ltd. (``IPPL'')
    Comment 10: UGSL's Use of the EPCGS (Unreported License)
    Comment 11: Whether the Department Should Apply Adverse Facts 
Available to JSWSL Based on Failure To Report Information About 
Subsidiaries
    Comment 12: Whether JSWSL Used the DFIA Program or the 
Incremental Export Incentivisation Scheme
    Comment 13: JCPSL's Use of the Focus Market Scheme
    Comment 14: JSWSL's Use of the EPCGS (Unreported License)
X. 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

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purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2016-12967 Filed 6-1-16; 8:45 am]
 BILLING CODE 3510-DS-P