[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35303-35306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12979]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-878]


Certain Corrosion-Resistant Steel Products From the Republic of 
Korea: Final 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 corrosion-resistant steel products (``corrosion-resistant 
steel'') from the Republic of Korea (Korea) are being, or are likely to 
be, sold in the United States at less than fair value (``LTFV''), as 
provided in section 735(a) of the Tariff Act of 1930, as amended (``the 
Act''). The period of investigation (``POI'') is April 1, 2014, through 
March 31, 2015. The final estimated weighted-average dumping margins 
are listed below in the ``Final Determination'' section of this notice.

DATES:  Effective Date: June 2, 2016.

FOR FURTHER INFORMATION CONTACT:  Elfi Blum or Lingjun Wang, 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-
0197 or (202) 482-2316, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the preliminary determination on January 
4, 2016.\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 Issues and Decision Memorandum.\2\
---------------------------------------------------------------------------

    \1\ See Certain Corrosion-Resistant Steel Products From the 
Republic of Korea: Affirmative Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination, 81 FR 
78 (January 4, 2016) (Preliminary Determination) and accompanying 
Preliminary Decision Memorandum.
    \2\ 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 Antidumping Duty Investigation of Certain 
Corrosion-Resistant Steel Products from the People's Republic of 
China,'' (Final Issues and Decision Memorandum), dated concurrently 
with this determination and hereby adopted by this notice.
---------------------------------------------------------------------------

    Also, as explained in the memorandum from the Acting Assistant 
Secretary for Enforcement and Compliance, the Department exercised its 
authority to toll all administrative deadlines due to the recent 
closure of the Federal Government.\3\ As a consequence, 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.
---------------------------------------------------------------------------

    \3\ See Memorandum to the File from Ron Lorentzen, Acting A/S 
for Enforcement & Compliance, ``Tolling of Administrative Deadlines 
As a Result of the Government Closure During Snowstorm Jonas'' dated 
January 27, 2016.
---------------------------------------------------------------------------

Scope of the Investigation

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

Scope Comments

    In accordance with the Preliminary Scope Determination,\4\ the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.
---------------------------------------------------------------------------

    \4\ 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.
---------------------------------------------------------------------------

    For a summary of the product coverage comments and rebuttal 
responses submitted on the record of this final determination, and 
accompanying discussion and analysis of all comments timely received, 
see the Final Scope Decision Memorandum.\5\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
---------------------------------------------------------------------------

    \5\ 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.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Final Issues and Decision 
Memorandum, which is hereby adopted by this notice.\6\ A list of the 
issues raised is attached to this notice as Appendix I. The Final 
Issues and 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 https://access.trade.gov and 
it is available to all parties in the Central Records Unit, Room B-8024 
of the main Department of Commerce building. In addition, a complete 
version of the Final Issues and Decision Memorandum can be accessed 
directly at http://enforcement.trade.gov/frn/index.html. The signed and 
electronic versions of the Final Issues and Decision Memorandum are 
identical in content.
---------------------------------------------------------------------------

    \6\ See Final Issues and Decision Memorandum.
---------------------------------------------------------------------------

Verification

    As provided in section 782(i) of the Act, in January, February, and 
April 2016, the Department verified the sales

[[Page 35304]]

and cost data reported by the mandatory respondents Hyundai Steel 
Company (Hyundai) and Dongkuk Steel Mill Co., Ltd./Union Steel 
Manufacturing Co., Ltd. (Dongkuk/Union Steel), pursuant to section 
782(i) of the Act. We used standard verification procedures, including 
an examination of relevant accounting and production records, and 
original source documents provided by respondents.

Changes to the Margin Calculations Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
Hyundai and Dongkuk/Union Steel. For a discussion of these changes, see 
the Final Issues and Decision Memorandum. We have also revised the all-
others rate.

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 Korea produced or exported by Hyundai and ``all-
others.'' \7\ As discussed in the Final Issues and Decision Memorandum, 
we no longer find critical circumstances with respect to Hyundai. We 
continue to find that critical circumstances exist with respect to 
``all-others'' companies.\8\ Thus, in accordance with section 735(a)(3) 
of the Act, we find that critical circumstances exist with respect to 
imports produced or exported by all other producers/exporters, but do 
not exist for Hyundai and Dongkuk/Union Steel.
---------------------------------------------------------------------------

    \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 Issues and Decision Memorandum.
---------------------------------------------------------------------------

All-Others Rate

    Consistent with sections 735(c)(1)(B)(i)(II) and 735(c)(5) of the 
Act, the Department also calculated an estimated all-others rate. 
Section 735(c)(5)(A) of the Act provides that the estimated all-others 
rate shall be an amount equal to the weighted average of the estimated 
weighted-average dumping margins established for exporters and 
producers individually investigated, excluding any zero and de minimis 
margins, and any margins determined entirely under section 776 of the 
Act. Where the rates for investigated companies are zero or de minimis, 
or based entirely on facts otherwise available, section 735(c)(5)(B) of 
the Act instructs the Department to establish an ``all others'' rate 
using ``any reasonable method.''
    In this investigation, we calculated weighted-average dumping 
margins for Hyundai and Dongkuk/Union, that are above de minimis and 
which are not based on total facts available. We calculated the all-
others rate using a simple average of the dumping margins calculated 
for the mandatory respondents.\9\
---------------------------------------------------------------------------

    \9\ With two respondents, we would normally calculate (A) a 
weighted-average of the dumping margins calculated for the mandatory 
respondents; (B) a simple average of the dumping margins calculated 
for the mandatory respondents; and (C) a weighted-average of the 
dumping margins calculated for the mandatory respondents using each 
company's publicly-ranged values for the merchandise under 
consideration. We would compare (B) and (C) to (A) and select the 
rate closest to (A) as the most appropriate rate for all other 
companies. See Ball Bearings and Parts Thereof From France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
unavailable, we based the all-others rate on a simple average of the 
two calculated margins.
---------------------------------------------------------------------------

Final Determination Margins

    The Department determines that the following estimated weighted-
average dumping margins exist:
---------------------------------------------------------------------------

    \10\ See Footnote 9.

------------------------------------------------------------------------
                                             Weighted-
                                              average      Cash deposit
          Exporter/manufacturer               dumping          rate
                                              margins        (percent)
                                             (percent)
------------------------------------------------------------------------
Dongkuk Steel Mill Co., Ltd./Union Steel            8.75            8.75
 Manufacturing Co., Ltd.................
Hyundai Steel Company...................           47.80           47.79
All Others \10\.........................           28.28           28.27
------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, the Department will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of corrosion-resistant steel from 
Korea, which were entered, or withdrawn from warehouse, for consumption 
on or after October 6, 2015 (for those entities for which we found 
critical circumstances exist) or on or after January 4, 2016, the date 
of publication in the Federal Register of the affirmative Preliminary 
Determination (for all entities for which we did not find critical 
circumstances exist). Because we find in this final determination that 
critical circumstances do not exist for Hyundai, we will terminate the 
retroactive suspension of liquidation ordered at the Preliminary 
Determination and release any cash deposits that were required during 
that period, consistent with section 735(c)(3) of the Act.
    As noted above, where the product under investigation is also 
subject to a concurrent countervailing duty investigation, we instruct 
CBP to require a cash deposit less the amount of the countervailing 
duty determined to constitute any export subsidies. Therefore, in the 
event that a countervailing duty order is issued and suspension of 
liquidation is resumed in the companion countervailing duty 
investigation on corrosion-resistant steel from the Korea, the 
Department will instruct CBP to require cash deposits adjusted by the 
amount of export subsidies, as appropriate. These adjustments are 
reflected in the final column of the rate chart, above. Until such 
suspension of liquidation is resumed in the companion countervailing 
duty investigation, and so long as suspension of liquidation continues 
under this antidumping duty investigation, the cash deposit rates for 
this antidumping duty investigation will be the rates identified in the 
weighted-average margin column in the rate chart, above.

[[Page 35305]]

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. 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 corrosion-resistant steel from Korea no later than 
45 days after our final determination. If the ITC determines that 
material injury or threat of material injury does not exist, the 
proceeding will be terminated and all cash deposits will be refunded. 
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 (``APO'')

    This notice serves as a reminder to parties subject to APO of their 
responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
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 the terms of an APO is a violation 
subject to sanction.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

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

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

I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Changes Since the Preliminary Determination
VI. Use of Adverse Facts Available
VII. Discussion of the Issues
    Comment 1: Whether Critical Circumstances Exist for Hyundai and 
for POSCO, as Part of ``all other producers/exporters''
    Comment 2: Whether the Department Should Exclude Hyundai's Sales 
of TWBs and Auto Parts Pursuant to Section 772(e) of the Act
    Comment 3: Whether the Department Erred in Applying Facts 
Otherwise Available and Surreptitiously Used an Adverse Inference 
With Respect to its Sales of TWBs and Auto Parts in the Preliminary 
Determination
    Comment 4: Whether the FMG Data Submitted by Hyundai for its 
Sales of TWBs, Auto Parts, Sheet, Skelp and Blanks Should Be Used in 
the Final Determination
    Comment 5: Whether the Department Should Apply Adverse Facts 
Available to Calculate the Final Dumping Margin for Hyundai
    Comment 6: Whether the Department Should Adjust Hyundai's G&A 
Expenses for Subject Merchandise
    Comment 7: Whether the Department Should Adjust Hyundai's Costs 
to Account for Non-Prime Merchandise
    Comment 8: Whether the Department Should Adjust' Ocean Freight 
Expenses to Reflect Arm's Length
    Comment 9: The Department Should Disallow Certain Billing 
Adjustments for Home Market and U.S. Sales
    Comment 10: Whether the Department's Adjustment to Marine 
Insurance is Unwarranted
    Comment 11: Whether the Department Should Adjust HSA's Indirect 
Spelling Expense Ratio
    Comment 12: Whether the Department Failed to Deduct Further 
Manufacturing Resulting in Overstating CEP Profit
    Comment 13: Use of the Average-to-Transaction Method With 
Zeroing
    Comment 14: Whether the Major Input Rule Analysis Should Be 
Conducted
    Comment 15: Whether Application of AFA Is Warranted With Regard 
to Home Market Sales and Production Cost of Processed CORE
    Comment 16: Whether to Recalculate Home Market Credit Expense
    Comment 17: Whether to Adjust Inland Freight in Korea for U.S. 
Sales
    Comment 18: Whether to Adjust Inland Freight in Korea for Home 
Market Sales
    Comment 19: Whether Application of AFA Is Warranted With Regard 
to U.S. Warranty Expenses
    Comment 20: Whether the Application of AFA Is Warranted for 
Dongkuk's Failure to Report Home Market Sales by an Affiliate
    Comment 21: Application of the Average-to-Transaction Method to 
all U.S. Sales
VIII. 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.

[[Page 35306]]

    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. 2016-12979 Filed 6-1-16; 8:45 am]
 BILLING CODE 3510-DS-P