[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35329-35332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12986]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-863]


Certain Corrosion-Resistant Steel Products From India: Final 
Determination of Sales at Less Than Fair Value and Final Negative 
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 India is being, or is 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 dumping margins of sales at LTFV are listed below in the 
``Final Determination'' section of this notice.

DATES: Effective Date: June 2, 2016.

FOR FURTHER INFORMATION CONTACT: Kabir Archuletta or Ryan Mullen, 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-
2593 or (202) 482-5260, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 4, 2016, the Department published the Preliminary 
Determination of this antidumping duty (``AD'') investigation.\1\ The 
following events occurred since the Preliminary Determination was 
issued.
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    \1\ See Certain Corrosion-Resistant Steel Products from India: 
Affirmative Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination, 81 FR 63 (January 4, 
2016) (``Preliminary Determination'').
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    In April 2016, the Department received revised databases from JSW 
\2\ and Uttam Galva Steels Ltd. (``Uttam Galva''), the mandatory 
respondents in this investigation.
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    \2\ We refer to JSW Steel Ltd. (``JSWSL'') and its wholly-owned 
affiliate JSW Steel Coated Products Limited (``JSCPL'') collectively 
as ``JSW.''
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    Additionally, in April 2016, Petitioners,\3\ JSW, and Uttam Galva 
submitted case briefs \4\ and rebuttal briefs.\5\ A hearing was held on 
May 4, 2016.
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    \3\ Petitioners are United States Steel Corporation, Nucor 
Corporation, ArcelorMittal USA, AK Steel Corporation, Steel 
Dynamics, Inc., and California Steel Industries, Inc.
    \4\ See Letter to the Secretary of Commerce from Petitioners, 
``Case Brief of Petitioners'' (April 18, 2016); Letter to the 
Secretary of Commerce from JSW, ``JSW's Resubmitted Case Brief'' 
(April 21, 2016); and Letter to the Secretary of Commerce from Uttam 
Galva, ``Uttam Galva Steels Limited's Case Brief'' (April 19, 2016).
    \5\ See Letter to the Secretary of Commerce from Petitioners, 
``Petitioners' Rebuttal Brief'' (April 25, 2016); Letter to the 
Secretary of Commerce from JSW, ``JSW's Rebuttal Brief'' (April 25, 
2016); and Letter to the Secretary of Commerce from Uttam Galva, 
``Uttam Galva Steels Limited's Rebuttal Brief'' (April 25, 2016) .
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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.\6\ As a consequence, all deadlines 
in this segment of the proceeding have been extended by four business 
days. The revised deadline for the final results is now May 24, 2016.
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    \6\ 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 India. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I of 
this notice.

Scope Comments

    In accordance with the Preliminary Scope Determination,\7\ the 
Department

[[Page 35330]]

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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    \7\ 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.\8\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
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    \8\ 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 Issues and Decision Memorandum, 
which is hereby adopted by this notice.\9\ A list of the issues raised 
is attached to this notice as Appendix II. The 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 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \9\ See Memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations 
``Issues and Decision Memorandum for the Final Determination of the 
Antidumping Duty Investigation of Certain Corrosion-Resistant Steel 
Products from India'' (May 24, 2016) (``Issues and Decision 
Memorandum'').
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Verification

    As provided in section 782(i) of the Act, in January, February, and 
March 2016, the Department verified the sales and cost data reported by 
the mandatory respondents, 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.\10\
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    \10\ See Memorandum to the File, through Neal Halper, Office 
Director, and Peter Scholl, Lead Accountant, from Ji Young Oh, 
Senior Accountant, ``Verification of the Cost Response of JSW Steel 
Limited and JSW Steel Coated Products Limited in the Antidumping 
Duty Investigation of Certain Corrosion-Resistant Steel Flat 
Products from India'' (April 7, 2016); Memorandum to the File, 
through Neal Halper, Office Director, and Peter Scholl, Lead 
Accountant, from Alma Sepulveda, Senior Accountant, and Laurens van 
Houten, Senior Accountant, ``Verification of the Cost Response of 
Uttam Galva Steels Limited in the Antidumping Duty Investigation of 
Certain Corrosion-Resistant Steel Flat Products from India'' (March 
23, 2016); Memorandum to the File, through Catherine Bertrand, 
Program Manager, Office V, from Kabir Archuletta, Senior 
International Trade Analyst, Ryan Mullen, International Trade 
Analyst, and Jessica Weeks, International Trade Analyst, 
``Verification of JSW Steel Ltd. and JSW Coated Steel Products in 
the Antidumping Duty Investigation of Certain Corrosion-Resistant 
Steel from India'' (April 7, 2016); Memorandum to the File, through 
Catherine Bertrand, Program Manager, Office V, from Ryan Mullen, 
International Trade Analyst, ``Verification of Home Market and U.S. 
Sales of Uttam Galva Steels Limited in the Antidumping Duty 
Investigation of Certain Corrosion-Resistant Steel Products from 
India'' (April 7, 2016); and Memorandum to the File, through 
Catherine Bertrand, Program Manager, Office V, from Ryan Mullen, 
International Trade Analyst, ``Verification of U.S. Sales of Uttam 
Galva North America in the Antidumping Duty Investigation of Certain 
Corrosion-Resistant Steel Products from India'' (April 7, 2016).
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Changes 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 
JSW and Uttam Galva. For a discussion of these changes, see the 
``Margin Calculations'' and ``Comparisons to Fair Value'' sections of 
the Issues and Decision Memorandum. We have also revised the all-others 
rate.

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 or de 
minimis margins, and margins determined entirely under section 776 of 
the Act. Therefore, we calculated the all-others rate based on a 
weighted average of the dumping margins calculated for the mandatory 
respondents using each company's publicly-ranged values for the 
merchandise under consideration.\11\
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    \11\ 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).
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Final Determination

    The Department determines that the final weighted-average dumping 
margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         margin
                                                               (percent)
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JSW: \12\...................................................        4.44
    JSW Steel Ltd
    JSW Coated Products Limited
Uttam Galva: \13\...........................................        3.05
    Uttam Galva Steels Limited..............................
    Uttam Value Steels Limited..............................
    Atlantis International Services Company Ltd
    Uttam Galva Steels, Netherlands, B.V
    Uttam Galva Steels (BVI) Limited
All-Others..................................................        3.86
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Disclosure
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    \12\ We find JSWSL and its wholly-owned affiliated JSCPL, 
(collectively ``JSW'') are affiliated and have met the criteria to 
be collapsed. See Memorandum to the File, through Catherine 
Bertrand, Program Manager, Enforcement and Compliance, Office V, 
from Kabir Archuletta, Senior International Trade Analyst, 
Enforcement and Compliance, Office V, ``Antidumping Duty 
Investigation of Certain Corrosion Resistant Steel Products from 
India: JSW Affiliation and Collapsing Memorandum,'' dated 
concurrently with this determination. Therefore, we will assign one 
rate to these companies.
    \13\ We find Uttam Galva to be affiliated with these companies 
and that they have met the criteria to be treated as a single 
entity. For further discussion of this issue, which includes 
business proprietary information, see Memorandum to James C. Doyle, 
Director, Office V, through Catherine Bertrand, Program Manager, 
Office V, from Ryan Mullen, International Trade Analyst, Office V, 
``Antidumping Duty Investigation of Certain Corrosion Resistant 
Steel Products from India: Uttam Galva Affiliation and Single Entity 
Memorandum,'' dated concurrently with this determination. Therefore, 
we will assign one rate to these companies.
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    We will disclose the calculations performed to interested parties 
within five days of the public announcement of this final determination 
in accordance with 19 CFR 351.224(b).

Final Negative Determination of Critical Circumstances

    On October 29, 2015, the Department found that critical 
circumstances do not exist for imports exported by JSW, Uttam Galva, 
and ``all others.'' \14\ Based

[[Page 35331]]

on the final dumping margins of JSW and Uttam Galva and further 
analysis following the Preliminary Critical Circumstances 
Determination, we are not modifying our findings for the final 
determination. For a complete discussion of this issue, see the 
``Negative Finding of Critical Circumstances'' section of the Issues 
and Decision Memorandum.
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    \14\ 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 
Determination of Critical Circumstances, 80 FR 68504, (November 5, 
2015).
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Continuation of Suspension of Liquidation

    In accordance with 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 appropriate entries of corrosion-
resistant steel from India, as described in Appendix I of this notice, 
which were entered, or withdrawn from warehouse, for consumption on or 
after January 4, 2016, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register.
    Further, CBP shall require a cash deposit equal to the estimated 
amount by which the normal value exceeds the U.S. price, as follows: 
(1) For the exporters/producers listed in the table above, the cash 
deposit rates will be equal to the dumping margin which the Department 
determined in this final determination; (2) if the exporter is not a 
firm identified in this investigation but the producer is, the rate 
will be the rate established for the producer of the subject 
merchandise; (3) the rate for all other producers or exporters will be 
4.03 percent. These instructions suspending liquidation will remain in 
effect until further notice.
    Pursuant to section 733 (d)(1)(B) of the Act and 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit equal to the 
weighted-average amount by which the NV exceeds U.S. price as indicated 
in the chart above,\15\ adjusted where appropriate for export 
subsidies,\16\ as follows: (1) The rate for JSW, when adjusted for 
export subsidies, is 0.49 percent; (2) the rate for Uttam Galva, when 
adjusted for export subsidies, is 0.00 percent; (3) the rate for all 
other producers or exporters, when adjusted for export subsidies, is 
0.00 percent.
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    \15\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
    \16\ See section 772(c)(1)(C) of the Act. Unlike in 
administrative reviews, the Department calculates the adjustment for 
export subsidies in investigations not in the margin calculation 
program, but in the cash deposit instructions issued to CBP. See 
Notice of Final Determination of Sales at Less Than Fair Value, and 
Negative Determination of Critical Circumstances: Certain Lined 
Paper Products from India, 71 FR 45012 (August 8, 2006), and 
accompanying Issues and Decision Memorandum at Comment 1.
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    The instructions suspending liquidation will remain in effect until 
further notice.

ITC 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 India 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--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''),

[[Page 35332]]

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.

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

1. Summary
2. Background
3. Period of Investigation
4. Margin Calculations
5. Comparisons to Fair Value
6. List of Comments
7. Discussion of Comments
    Comment 1: Duty Drawback
    Comment 2: Date of Sale
    Comment 3: Revision of Uttam Galva's Yield Strength Product 
Characteristics
    Comment 4: JSW's Sales Below Cost
    Comment 5: Export Subsidy Offset Deduction for Duty Drawback 
Subsidy Rates
    Comment 6: JSW's Forward Exchange Rate Contracts
    Comment 7: Treatment of JSW's Domestic Brokerage and Handling
    Comment 8: Adjustments for JSW Verification Findings
    Comment 9: JSW's POI Material Costs
    Comment 10: Uttam Galva's Cost of Production Minor Corrections
    Comment 11: JSW Royalty Expense
    Comment 12: Ministerial Errors
    Comment 13: Uttam Galva's Differential Pricing Analysis
8. Negative Finding of Critical Circumstances
9. Conclusion

[FR Doc. 2016-12986 Filed 6-1-16; 8:45 am]
 BILLING CODE 3510-DS-P