[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53436-53439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19374]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-412-825]


Certain Hot-Rolled Steel Flat Products From the United Kingdom: 
Final Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (the Department) determines that 
imports of certain hot-rolled steel flat products (hot-rolled steel) 
from the United Kingdom are being, or are likely to be, sold in the 
United States at less than fair value (LTFV). The period of 
investigation (POI) is July 1, 2014, through June 30, 2015. The final 
dumping margins of sales at LTFV are listed below in the ``Final 
Determination'' section of this notice.

DATES: Effective August 12, 2016.

FOR FURTHER INFORMATION CONTACT: Catherine Cartsos, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-1757.

SUPPLEMENTARY INFORMATION: 

Background

    On March 22, 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 Hot-Rolled Steel Flat Products From the United 
Kingdom: Affirmative Preliminary Determination of Sales at Less Than 
Fair Value, Postponement of Final Determination and Extension of 
Provisional Measures, 81 FR 15244 (March 22, 2016) (Preliminary 
Determination).
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    In March 2016, the Department received supplemental cost responses 
and revised sales files from Tata Steel UK Ltd. (TSUK), the sole 
mandatory respondent in this investigation.\2\
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    \2\ See Letter from TSUK, ``Antidumping Duty Investigation of 
Certain Hot-Rolled Steel Flat Products from the United Kingdom: 
TSUK's Section D Second Supplemental Questionnaire Response'' (March 
22, 2016). See also Letter from TSUK, ``Antidumping Duty 
Investigation of Certain Hot-Rolled Steel Flat Products from the 
United Kingdom: TSUK's Submission of Revised Sales Files Due to 
Minor Corrections Presented at Sales Verification'' (March 25, 
2016).
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    In June 2016, AK Steel (one of the petitioners),\3\ and TSUK 
submitted case briefs \4\ and rebuttal briefs.\5\ A hearing was held on 
June 21, 2016.
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    \3\ AK Steel Corporation (AK Steel), ArcelorMittal USA LLC, 
Nucor Corporation, SSAB Enterprises, LLC, Steel Dynamics, Inc., and 
United States Steel Corporation (collectively, the petitioners).
    \4\ See Letter from the petitioners, ``Certain Hot-Rolled Steel 
Flat Products From The United Kingdom/Petitioner's Case Brief'' 
(June 8, 2016); and Letter from TSUK, ``Antidumping Duty 
Investigation of Certain Hot-Rolled Steel Flat Products from the 
United Kingdom: Case Brief of Tata Steel UK Ltd. and Tata Steel 
International (Americas) Inc.'' (June 8, 2016).
    \5\ See Letter from the petitioners, ``Certain Hot-Rolled Steel 
Flat Products From The United Kingdom/Petitioner's Rebuttal Brief'' 
(June 13, 2016); and Letter from TSUK, ``Antidumping Duty 
Investigation of Certain Hot-Rolled Steel Flat Products from the 
United Kingdom: Rebuttal Brief of Tata Steel UK Ltd. and Tata Steel 
International (Americas) Inc.'' (June 13, 2016).
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Scope of the Investigation

    The products covered by this investigation are certain hot-rolled 
steel flat products from the United Kingdom. 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 the Preliminary Scope Decision Memorandum,\6\ 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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    \6\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Hot-Rolled Steel Products From Australia, Brazil, Japan, 
the Netherlands, the Republic of Korea, Turkey, and the United 
Kingdom: Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated March 14, 2016 (Preliminary Scope Decision 
Memorandum).
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    In the Preliminary Determination, we did not modify the scope 
language as it appeared in the Initiation Notice.\7\ No

[[Page 53437]]

interested parties submitted scope comments in case or rebuttal briefs; 
therefore, the scope of this investigation remains unchanged for this 
final determination.
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    \7\ See Preliminary Determination and accompanying Memorandum 
from Christian Marsh, Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, to Paul Piquado, Assistant Secretary 
for Enforcement and Compliance, entitled ``Decision Memorandum for 
the Preliminary Determination in the Less-Than-Fair-Value 
Investigation of Certain Hot-Rolled Steel Flat Products from the 
United Kingdom'' at page 4. See also Certain Hot-Rolled Steel Flat 
Products From Australia, Brazil, Japan, the Republic of Korea, the 
Netherlands, The Republic of Turkey, and the United Kingdom: 
Initiation of Less-Than-Fair-Value Investigations, 80 FR 54261, 
54262 (September 9, 2015) (Initiation 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.\8\ 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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    \8\ See Memorandum to Ronald K. Lorentzen, Acting 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 Hot-
Rolled Steel Flat Products from the United Kingdom'' (August 4, 
2016) (Issues and Decision Memorandum).
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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in March and April 2016, the Department verified the sales 
and cost data reported by the mandatory respondent. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by the respondent.\9\
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    \9\ See Memorandum to the File entitled ``Certain Hot-Rolled 
Steel Flat Products from the United Kingdom: Home-Market and Export-
Price Sales Verification of Tata Steel UK Ltd.,'' dated April 12, 
2016, Memorandum to the File entitled ``Certain Hot-Rolled Steel 
Flat Products from the United Kingdom: Constructed-Export-Price 
Sales Verification of Tata Steel UK Ltd.,'' dated May 18, 2016, and 
Memorandum to the File entitled ``Verification of the Cost Response 
of Tata Steel UK Ltd. in the Antidumping Duty Investigation of 
Certain Hot-Rolled Steel Flat Products from the United Kingdom,'' 
dated May 31, 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 
TSUK. 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. We calculated a company-specific rate for Tata Steel UK Ltd. 
that is not zero, de minimis or determined entirely under section 776 
of the Act. Therefore, for purposes of determining the ``all-others'' 
rate and pursuant to section 735(c)(5)(A) of the Act, we are using the 
weighted-average dumping margin calculated for Tata Steel UK Ltd. as 
the estimated weighted-average dumping margin assigned to all other 
producers and exporters of the merchandise under consideration.

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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Tata Steel UK Ltd..........................................        33.06
All-Others.................................................        33.06
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Disclosure

    We intend to 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).

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 hot-rolled steel from 
the United Kingdom, as described in Appendix I of this notice, which 
were entered, or withdrawn from warehouse, for consumption on or after 
March 22, 2016, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register.
    Further, pursuant to section 735(c)(1)(B)(ii) of the Act, 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 exporter/
producer listed in the table above, the cash deposit rate will be equal 
to the weighted average 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 33.06 percent, as 
discussed in the ``All Others Rate'' section, above. These instructions 
suspending liquidation will remain in effect until further notice.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (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 hot-rolled 
steel from the United Kingdom 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, as discussed above in the 
``Continuation of Suspension of Liquidation'' section. 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.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the

[[Page 53438]]

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: August 4, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled, flat-rolled steel products, with or without patterns in 
relief, and 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 
thickness, and 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 of 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 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 achieve 
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 unless the resulting measurement makes the product 
covered by the existing antidumping \10\ or countervailing duty \11\ 
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products 
From the Republic of Korea (A-580-836; C-580-837), and
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    \10\ Notice of Amendment of Final Determinations of Sales at 
Less Than Fair Value and Antidumping Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate Products From France, India, 
Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6585 
(February 10, 2000).
    \11\ Notice of Amended Final Determinations: Certain Cut-to-
Length Carbon-Quality Steel Plate From India and the Republic of 
Korea; and Notice of Countervailing Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate From France, India, Indonesia, 
Italy, and the Republic of Korea, 65 FR 6587 (February 10, 2000).
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    (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, or
     0.80 percent of molybdenum, or
     0.10 percent of niobium, 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, the 
substrate for 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. The substrate for motor 
lamination steels contains 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 hot-rolled steel that has been 
further processed in a third country, including but not limited to 
pickling, oiling, levelling, annealing, tempering, temper rolling, 
skin passing, 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 hot-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 
investigation:
     Universal mill plates (i.e., hot-rolled, flat-rolled 
products not in coils that have been rolled on four faces or in a 
closed box pass, of a width exceeding 150 mm but not exceeding 1250 
mm, of a thickness not less than 4.0 mm, and without patterns in 
relief);
     Products that have been cold-rolled (cold-reduced) 
after hot-rolling; \12\
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    \12\ For purposes of this scope exclusion, rolling operations 
such as a skin pass, levelling, temper rolling or other minor 
rolling operations after the hot-rolling process for purposes of 
surface finish, flatness, shape control, or gauge control do not 
constitute cold-rolling sufficient to meet this exclusion.
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     Ball bearing steels; \13\
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    \13\ 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; \14\ and
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    \14\ 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 steels; \15\
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    \15\ 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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    The products subject to this investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7208.10.1500, 7208.10.3000, 
7208.10.6000, 7208.25.3000, 7208.25.6000, 7208.26.0030, 
7208.26.0060, 7208.27.0030, 7208.27.0060, 7208.36.0030, 
7208.36.0060, 7208.37.0030, 7208.37.0060, 7208.38.0015, 
7208.38.0030, 7208.38.0090, 7208.39.0015, 7208.39.0030, 
7208.39.0090, 7208.40.6030, 7208.40.6060, 7208.53.0000, 
7208.54.0000, 7208.90.0000, 7210.70.3000, 7211.14.0030, 
7211.14.0090, 7211.19.1500, 7211.19.2000, 7211.19.3000, 
7211.19.4500, 7211.19.6000, 7211.19.7530, 7211.19.7560, 
7211.19.7590, 7225.11.0000, 7225.19.0000, 7225.30.3050, 
7225.30.7000, 7225.40.7000, 7225.99.0090, 7226.11.1000, 
7226.11.9030, 7226.11.9060, 7226.19.1000, 7226.19.9000, 
7226.91.5000, 7226.91.7000, and 7226.91.8000. The products subject 
to the investigation may also enter under the following HTSUS 
numbers: 7210.90.9000, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
7212.50.0000, 7214.91.0015, 7214.91.0060, 7214.91.0090, 
7214.99.0060, 7214.99.0075, 7214.99.0090, 7215.90.5000, 
7226.99.0180, and 7228.60.6000.
    The HTSUS subheadings above are provided for convenience and 
U.S. Customs purposes only. The written description of the scope of 
the investigation is dispositive.

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Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Margin Calculations
V. Comparisons to Fair Value
VI. Discussion of Issues
    Comment 1: Total Adverse Facts Available
    Comment 2: Level of Trade
    Comment 3: Home-Market Freight Revenue
    Comment 4: CEP Credit Expense
    Comment 5: Restructuring and Impairment Costs
    Comment 6: Raw Material Costs
    Comment 7: Energy Costs
    Comment 8: Partial Adverse Facts Available for Certain Sales
    Comment 9: Verification Correction
VII. Recommendation

[FR Doc. 2016-19374 Filed 8-11-16; 8:45 am]
 BILLING CODE 3510-DS-P