[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]
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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\
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\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.
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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.
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\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.
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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.
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\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.
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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.
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\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.
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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.
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\6\ See Final Issues and Decision Memorandum.
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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.
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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 Issues and Decision Memorandum.
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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\
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\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.
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Final Determination Margins
The Department determines that the following estimated weighted-
average dumping margins exist:
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\10\ See Footnote 9.
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Weighted-
average Cash deposit
Exporter/manufacturer dumping rate
margins (percent)
(percent)
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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
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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