[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Notices]
[Pages 45960-45962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16794]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-030]


Certain Cold-Rolled Steel Flat Products From the People's 
Republic of China: Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the Department) and the International Trade Commission (ITC), 
the Department is issuing a countervailing duty order on certain cold-
rolled steel flat products (cold-rolled steel) from the People's 
Republic of China (PRC).

DATES: Effective Date: July 14, 2016.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas at (202) 482-3813 or 
John Corrigan at (202) 482-7438, AD/CVD Operations, Office VI, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On May 24, 2016, the Department published its final determination 
in the countervailing duty investigation of cold-rolled steel from the 
PRC.\1\ On July 7, 2016, the ITC notified the Department of its final 
determination pursuant to section 705(b)(1)(A)(i) and section 705(d) of 
the Tariff Act of 1930, as amended (Act), that an industry in the 
United States is materially injured by reason of subsidized imports of 
cold-rolled steel from the PRC, and its determination pursuant to 
section 705(b)(4)(A) of the Act that critical circumstances do not 
exist with respect to imports of subject merchandise from the PRC that 
are subject to the Department's affirmative critical circumstances 
finding, in part.\2\
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    \1\ See Certain Cold-Rolled Steel Flat Products From the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination and Final Partial Affirmative Critical Circumstances 
Determination, 81 FR 32729 (May 26, 2016) (Final Determination).
    \2\ See Letter to Christian Marsh, Deputy Assistant Secretary of 
Commerce for Enforcement and Compliance, from Irving A Williamson, 
Chairman of the U.S. International Trade Commission, regarding 
certain cold-rolled steel flat products from China and Japan (July 
7, 2016) (ITC Letter). See also Cold-Rolled Steel Flat Products from 
China and Japan (Investigation Nos. 701-TA-541 and 731-TA-1284 and 
1286 (Final), USITC Publication 4619, July 2016) (Final).
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Scope of the Order

    The products covered by this order are certain cold-rolled (cold-
reduced), flat-rolled steel products, whether or not annealed, painted, 
varnished, or coated with plastics or other non-metallic substances. 
The products covered do not include those that are clad, plated, or 
coated with metal. The products covered include coils that have a width 
or other lateral measurement (``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 order 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, high strength low alloy (HSLA) steels, motor lamination 
steels, Advanced High Strength Steels (AHSS), and Ultra High Strength 
Steels (UHSS). 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. Motor lamination 
steels contain micro-alloying levels of elements such as silicon and 
aluminum. AHSS and UHSS are considered high tensile strength and high 
elongation steels, although AHSS and UHSS are covered whether or not 
they are high tensile strength or high elongation steels.
    Subject merchandise includes cold-rolled 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

[[Page 45961]]

country of manufacture of the cold-rolled 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 order:
     Ball bearing steels; \3\
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    \3\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) Not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.
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     Tool steels; \4\
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    \4\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) More than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
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     Silico-manganese steel; \5\
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    \5\ Silico-manganese steel is defined as steels containing by 
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
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     Grain-oriented electrical steels (GOES) as defined in the 
final determination of the U.S. Department of Commerce in Grain-
Oriented Electrical Steel From Germany, Japan, and Poland.\6\
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    \6\ Grain-Oriented Electrical Steel From Germany, Japan, and 
Poland: Final Determinations of Sales at Less Than Fair Value and 
Certain Final Affirmative Determination of Critical Circumstances, 
79 FR 42501, 42503 (Dep't of Commerce, July 22, 2014). This 
determination defines grain-oriented electrical steel as ``a flat-
rolled alloy steel product containing by weight at least 0.6 percent 
but not more than 6 percent of silicon, not more than 0.08 percent 
of carbon, not more than 1.0 percent of aluminum, and no other 
element in an amount that would give the steel the characteristics 
of another alloy steel, in coils or in straight lengths.''
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     Non-Oriented Electrical Steels (NOES), as defined in the 
antidumping orders issued by the U.S. Department of Commerce in Non-
Oriented Electrical Steel From the People's Republic of China, Germany, 
Japan, the Republic of Korea, Sweden, and Taiwan.\7\
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    \7\ Non-Oriented Electrical Steel From the People's Republic of 
China, Germany, Japan, the Republic of Korea, Sweden, and Taiwan: 
Antidumping Duty Orders, 79 FR 71741, 71741-42 (Dep't of Commerce, 
Dec. 3, 2014). The orders define NOES as ``cold-rolled, flat-rolled, 
alloy steel products, whether or not in coils, regardless of width, 
having an actual thickness of 0.20 mm or more, in which the core 
loss is substantially equal in any direction of magnetization in the 
plane of the material. The term `substantially equal' means that the 
cross grain direction of core loss is no more than 1.5 times the 
straight grain direction (i.e., the rolling direction) of core loss. 
NOES has a magnetic permeability that does not exceed 1.65 Tesla 
when tested at a field of 800 A/m (equivalent to 10 Oersteds) along 
(i.e., parallel to) the rolling direction of the sheet (i.e., B800 
value). NOES contains by weight more than 1.00 percent of silicon 
but less than 3.5 percent of silicon, not more than 0.08 percent of 
carbon, and not more than 1.5 percent of aluminum. NOES has a 
surface oxide coating, to which an insulation coating may be 
applied.''
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    The products subject to this order are currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) under item 
numbers: 7209.15.0000, 7209.16.0030, 7209.16.0060, 7209.16.0070, 
7209.16.0091, 7209.17.0030, 7209.17.0060, 7209.17.0070, 7209.17.0091, 
7209.18.1530, 7209.18.1560, 7209.18.2510, 7209.18.2520, 7209.18.2580, 
7209.18.6020, 7209.18.6090, 7209.25.0000, 7209.26.0000, 7209.27.0000, 
7209.28.0000, 7209.90.0000, 7210.70.3000, 7211.23.1500, 7211.23.2000, 
7211.23.3000, 7211.23.4500, 7211.23.6030, 7211.23.6060, 7211.23.6090, 
7211.29.2030, 7211.29.2090, 7211.29.4500, 7211.29.6030, 7211.29.6080, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7225.50.6000, 7225.50.8080, 
7225.99.0090, 7226.92.5000, 7226.92.7050, and 7226.92.8050.
    The products subject to this order may also enter under the 
following HTSUS numbers: 7210.90.9000, 7212.50.0000, 7215.10.0010, 
7215.10.0080, 7215.50.0016, 7215.50.0018, 7215.50.0020, 7215.50.0061, 
7215.50.0063, 7215.50.0065, 7215.50.0090, 7215.90.5000, 7217.10.1000, 
7217.10.2000, 7217.10.3000, 7217.10.7000, 7217.90.1000, 7217.90.5030, 
7217.90.5060, 7217.90.5090, 7225.19.0000, 7226.19.1000, 7226.19.9000, 
7226.99.0180, 7228.50.5015, 7228.50.5040, 7228.50.5070, 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 
order is dispositive.

Countervailing Duty Order

    In accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act, 
the ITC has notified the Department of its final determination in this 
investigation, in which it found that imports of certain cold-rolled 
steel flat products from the PRC are materially injuring a U.S. 
industry.\8\ Therefore, in accordance with section 705(c)(2) of the 
Act, we are publishing this countervailing duty order.
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    \8\ See ITC Letter.
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    In accordance with section 706(a) of the Act, the Department will 
direct U.S. Customs and Border Protection (CBP) to assess, upon further 
instruction by the Department, countervailing duties on unliquidated 
entries of cold-rolled steel from the PRC entered, or withdrawn from 
warehouse, for consumption on or after December 22, 2015, the date on 
which the Department published its preliminary countervailing duty 
determinations in the Federal Register,\9\ and before April 20, 2016, 
the date on which the Department instructed CBP to discontinue the 
suspension of liquidation in accordance with section 703(d) of the Act. 
Section 703(d) of the Act states that the suspension of liquidation 
pursuant to a preliminary determination may not remain in effect for 
more than four months. Therefore, entries of cold-rolled steel made on 
or after April 20, 2016, and prior to the date of publication of the 
ITC's final determination in the Federal Register are not liable for 
the assessment of countervailing duties due to the Department's 
discontinuation, effective April 20, 2016, of the suspension of 
liquidation.
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    \9\ See Countervailing Duty Investigation of Certain Cold-Rolled 
Steel Flat Products From the People's Republic of China: Preliminary 
Affirmative Determination, Preliminary Partial Affirmative Critical 
Circumstances Determination, and Alignment of Final Determination 
With Final Antidumping Duty Determination, 80 FR 79558 (December 22, 
2015) (Preliminary Determination).
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Suspension of Liquidation

    In accordance with section 706 of the Act, the Department will 
direct CBP to reinstitute the suspension of liquidation of cold-rolled 
steel from the PRC, effective on the date of publication of the ITC's 
notice of final determination in the Federal Register, and to assess, 
upon further instruction by the Department pursuant to section 
706(a)(1) of the Act, countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rates for the subject merchandise. On or after the date of 
publication of the ITC's final injury determinations in the Federal 
Register, CBP must require, at the same time as importers would 
normally deposit estimated duties on this

[[Page 45962]]

merchandise, a cash deposit equal to the rates noted below:

------------------------------------------------------------------------
                                                                Subsidy
                      Exporter/producer                          rate
                                                               (percent)
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Angang Group Hong Kong Co., Ltd.............................      256.44
Benxi Iron and Steel (Group) Special Steel Co., Ltd.........      256.44
Qian'an Golden Point Trading Co., Ltd.......................      256.44
All-Others..................................................      256.44
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Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of cold-rolled steel from the PRC, we will 
instruct CBP to lift suspension and to refund any cash deposits made to 
secure the payment of estimated countervailing duties with respect to 
entries of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after September 23, 2015 (i.e., 90 
days prior to the date of the publication of the CVD Preliminary 
Determination), but before December 22, 2015 (i.e., the date of 
publication of the CVD Preliminary Determination).

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to cold-rolled steel from the PRC pursuant to section 706(a) of the 
Act. Interested parties may contact the Department's Central Records 
Unit, Room B8024 of the main Commerce Building, for copies of an 
updated list of countervailing duty orders currently in effect.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: July 11, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-16794 Filed 7-13-16; 8:45 am]
BILLING CODE 3510-DS-P