[Federal Register Volume 81, Number 137 (Monday, July 18, 2016)]
[Notices]
[Pages 46643-46645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16947]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-043]


Countervailing Duty Investigation of Stainless Steel Sheet and 
Strip From the People's Republic of China: Preliminary Affirmative 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of stainless steel sheet and strip (stainless 
sheet and strip) from the People's Republic of China (PRC). The period 
of investigation is January 1, 2015, through December 31, 2015. We 
invite interested parties to comment on this preliminary determination.

DATES: Effective July 18, 2016.

FOR FURTHER INFORMATION CONTACT: Emily Halle, 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) 482-0176.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The products covered by this investigation are stainless sheet and 
strip from the PRC. For a complete description of the scope of this 
investigation, see Appendix II.

Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the Act). For each of the subsidy programs found 
countervailable, we preliminarily determine that there is a subsidy, 
i.e., a financial contribution by an ``authority'' that gives rise to a 
benefit to the recipient, and that the subsidy is specific.\1\ For a 
full description of the methodology underlying our preliminary 
conclusions, see the Preliminary Decision Memorandum.\2\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix I to this notice. The Preliminary 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 
http://access.trade.gov, and is available to all parties in the Central 
Records Unit, Room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed Preliminary Decision Memorandum and the electronic version are 
identical in content.
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    \1\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \2\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Stainless Steel Sheet and Strip From the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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    The Department notes that, in making these findings, we relied, in 
part, on facts available and, because we find that one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, we drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\3\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \3\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination in this investigation with the final 
determination in the companion antidumping duty (AD) investigation of 
stainless sheet and strip from the PRC based on a request made by 
Petitioners.\4\ Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than November 23, 2016, 
unless postponed.
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    \4\ See Letter from Petitioners, ``Countervailing Duty 
Investigation of Stainless Steel Sheet and Strip from the People's 
Republic of China--Petitioners' Request to Align the Countervailing 
Duty Final Determination with the Companion Antidumping Duty Final 
Determination,'' June 24, 2016.
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an individual estimated countervailable subsidy rate for 
Shanxi Taigang Stainless Steel Co. Ltd. (Taigang), the only 
cooperating, individually-investigated exporter/producer. Additionally, 
in accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not individually investigated, we apply an ``all-others'' 
rate, which is normally calculated by weight averaging the subsidy 
rates of the companies selected for individual investigation by those 
companies' exports of the subject merchandise to the United States. 
However, under section 705(c)(5)(A)(i) of the Act, the all-others rate 
excludes zero and de minimis rates calculated for the exporters and 
producers individually investigated, as well as rates based entirely on 
facts otherwise available. Therefore, we have excluded the rates based 
entirely on facts otherwise available assigned to Ningbo Baoxin 
Stainless Steel Co., Ltd. (Ningbo Baoxin) and Daming International 
Import Export Co. Ltd. (Daming) from the all-others rate. Because the 
only individually calculated rate that is not zero, de minimis, or 
based on facts otherwise available is the rate calculated for Taigang, 
in accordance with section 705(c)(5)(A)(i) of the Act, the rate 
calculated for Taigang is preliminarily assigned as the all-others 
rate. The preliminary estimated countervailable subsidy rates are 
summarized in the table below.

[[Page 46644]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Shanxi Taigang Stainless Steel Co. Ltd..................           57.30
Ningbo Baoxin Stainless Steel Co., Ltd., Baosteel                 193.12
 Stainless Steel Co. Ltd., Baoshan Iron & Steel Co.,
 Ltd., Baosteel Desheng Stainless Steel Co., Ltd.,
 Baosteel Co., Ltd., Bayi Iron & Steel Co., Ltd., Ningbo
 Iron & Steel Co., Ltd., Shaoguan Iron & Steel Co.,
 Ltd., Guangdong Shaoguan Iron & Steel Co., Ltd., and
 Zhanjiang Iron & Steel Co., Ltd........................
Daming International Import Export Co. Ltd. and Tianjin           193.12
 Taigang Daming Metal Product Co., Ltd..................
All-Others..............................................           57.30
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    In accordance with section 703(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of stainless sheet and strip from the PRC as described in the 
``Scope of the Investigation. Pursuant to 19 CFR 351.205(d), the 
Department will instruct CBP to require a cash deposit equal to the 
rests indicated above. Section 703(e)(2) of the Act provides that, 
given an affirmative determination of critical circumstances, any 
suspension of liquidation shall apply to unliquidated entries of 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the later of (a) the date which is 90 days before the date on 
which the suspension of liquidation was first ordered, or (b) the date 
on which notice of initiation of the investigation was published. On 
June 27, 2016, we preliminarily found that critical circumstances exist 
for imports produced or exported by Taigang, Ningbo Baoxin, Daming, and 
all-other exporters or producers.\5\ Accordingly, for these companies, 
in accordance with section 703(e)(2)(A) of the Act, suspension of 
liquidation of stainless sheet and strip from the PRC, as described in 
the ``Scope of the Investigation,'' shall apply to unliquidated entries 
of merchandise entered, or withdrawn from warehouse, for consumption on 
or after the date which is 90 days before the publication of this 
notice, the date suspension of liquidation is first ordered.
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    \5\ See Countervailing Duty Investigation of Stainless Steel 
Sheet and Strip From the People's Republic of China: Preliminary 
Determination of Critical Circumstances, 81 FR 41519 (June 27, 
2016).
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Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order, without the written consent of the Assistant Secretary for 
Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\6\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\7\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \6\ See 19 CFR 351.224(b).
    \7\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: July 11, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Preliminary Determination of Critical Circumstances
VI. Injury Test
VII. Application of the CVD Law to Imports From the PRC
VIII. Alignment
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Subsidies Valuation
XI. Benchmarks and Interest Rates
XII. Analysis of Programs
XIII. Disclosure and Public Comment
XIV. Conclusion

Appendix II

Scope of the Investigation

    The merchandise covered by this investigation is stainless steel 
sheet and strip, whether in coils or straight lengths. Stainless 
steel is an alloy steel containing, by weight, 1.2 percent or less 
of carbon and 10.5 percent or more of chromium, with or without 
other elements. The subject sheet and strip is a flat-rolled product 
with a width that is greater than 9.5 mm and with a thickness of 
0.3048 mm and greater but less than 4.75 mm, and that is annealed or 
otherwise heat treated, and pickled or otherwise descaled. The 
subject sheet and strip may also be further processed (e.g., cold-
rolled, annealed, tempered, polished, aluminized, coated, painted, 
varnished, trimmed, cut, punched, or slit, etc.) provided that it 
maintains the specific dimensions of sheet and strip set forth above 
following such processing. The products described include products 
regardless of 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.
    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.
    Subject merchandise includes stainless steel sheet and strip 
that has been further processed in a third country, including but 
not limited to cold-rolling, annealing, tempering, polishing, 
aluminizing, coating, 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 stainless steel 
sheet and strip.

[[Page 46645]]

    Excluded from the scope of this investigation are the following: 
(1) Sheet and strip that is not annealed or otherwise heat treated 
and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled 
stainless steel products of a thickness of 4.75 mm or more); and (3) 
flat wire (i.e., cold-rolled sections, with a mill edge, rectangular 
in shape, of a width of not more than 9.5 mm).
    The products under investigation are currently classifiable 
under Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 
7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 
7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 
7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 
7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 
7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 
7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 
7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 
7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 
7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 
7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 
7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 
7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 
7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 
7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

[FR Doc. 2016-16947 Filed 7-15-16; 8:45 am]
BILLING CODE 3510-DS-P