[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53419-53421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19380]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-883]


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

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

SUMMARY: The Department of Commerce (Department) determines that 
certain hot-rolled steel flat products (hot-rolled 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). The period of 
investigation (POI) is July 1, 2014, through June 30, 2015. The final 
estimated weighted-average dumping margins are listed below in the 
``Final Determination'' section of this notice.

DATES: Effective August 12, 2016.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos or Matthew Renkey, 
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-
2243 or (202) 482-2312, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the preliminary determination on March 22, 
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 Hot-Rolled Steel Flat Products from the Republic 
of Korea: Affirmative Preliminary Determination of Sales at Less 
than Fair Value and Postponement of Final Determination, 81 FR 15228 
(March 22, 2016) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Affirmative Determination in the Antidumping Duty Investigation of 
Certain Hot-Rolled Steel Flat Products from the Republic of Korea,'' 
(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 closure of 
the Federal Government.\3\ As a consequence, all deadlines in this 
segment of the proceeding have been extended by four business days.
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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 products covered by this investigation are certain hot-rolled 
steel flat products from Korea. For a complete description of the scope 
of this investigation, see the ``Scope of the Investigation,'' in 
Appendix II of this notice.

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.\4\ 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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    \4\ See Final Issues and Decision Memorandum.
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Verification

    As provided in section 782(i) of the Act, in January, April, and 
June 2016, the Department verified the sales, cost, and further 
manufacturing data reported by the mandatory respondents Hyundai Steel 
Company and POSCO,\5\ 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.
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    \5\ We are continuing to collapse the mandatory respondent POSCO 
and Daewoo International Corporation (DWI), and henceforward refer 
to the collapsed entity as ``POSCO.'' See Preliminary Determination, 
81 FR at 15229.
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Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available for both POSCO and Hyundai Steel Company. 
Furthermore, because Hyundai Steel Company did not act to the best of 
its ability in responding to certain of the Department's requests for 
information, we drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\6\ For further 
information, see the accompanying Final Issues and Decision Memorandum.
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    \6\ See sections 776(a) and (b) of the Act.
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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 Steel Company and POSCO. For a discussion of these changes, see 
the Final Issues and Decision Memorandum. We have also revised the all-
others rate in accordance with the methodology described below.

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.''

[[Page 53420]]

    In this investigation, we calculated weighted-average dumping 
margins for Hyundai Steel Company and POSCO that are above de minimis 
and which are not based on total facts available. Accordingly, for the 
final determination, consistent with the Act and the Department's 
practice, the Department calculated the margin for the all-others rate 
using the ranged total sales values reported by POSCO and Hyundai Steel 
from the public versions of their submissions.\7\
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    \7\ See Memorandum to the File, ``Investigation of Certain Hot-
Rolled Steel Flat Products from the Republic of Korea, All-Others 
Rate Calculation,'' dated August 4, 2016. We note that it is the 
Department's practice to 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 Margins

    The Department determines that the following estimated weighted-
average dumping margins exist:

------------------------------------------------------------------------
                                     Weighted-average
       Exporter/Manufacturer         dumping margins   Cash deposit rate
                                        (percent)           (percent)
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Hyundai Steel Company.............               9.49               9.49
POSCO.............................               3.89               0.00
All Others........................               5.55               5.55
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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 hot-rolled steel from Korea, 
which were entered, or withdrawn from warehouse, for consumption on or 
after March 22, 2016 (the date of publication of the affirmative 
Preliminary Determination).
    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. Because of the 
affirmative final determination in the countervailing duty 
investigation, suspension of liquidation will be ordered in that 
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 cash 
deposit rate column in the rate chart, above. In the event that a 
countervailing duty order is issued and suspension of liquidation 
continues in the companion countervailing duty investigation on hot-
rolled steel from the Korea, the Department will continue to 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.

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 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 (APOs)

    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 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--List of Topics Discussed in the Final Issues and Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Changes Since the Preliminary Determination
VII. Discussion of the Issues
    Company-Specific Comments
    POSCO
    1. Correction of Errors in the Margin Calculation
    2. The Correct Code for Prime Merchandise to Use in the Margin 
Calculation
    3. CEP Offset
    4. Treatment of Side-Trimming Costs Accepted as a Minor 
Correction
    5. Foreign Brokerage and Handling Expense for Channel 5 Sales
    6. Revision of Further Manufacturing Costs for Non-Prime Channel 
5 Sales
    7. Date of Sale
    Hyundai Steel
    8. Reporting of Inland Freight, International Freight, Marine 
Insurance and Other Services Provided by Affiliated Companies
    9. CEP Offset
    10. Date of Sale
    11. Differential Pricing
    12. Hyundai Steel Calculation Issues
    13. Certain Home Market Customers
    14. Hyundai Steel America Channel 5 Issues
    15. Affiliated Home Market Resales

[[Page 53421]]

VIII. Recommendation

Appendix II--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 \8\ or countervailing duty \9\ 
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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    \8\ 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).
    \9\ 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; \10\
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    \10\ 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; \11\
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    \11\ 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; \12\ and
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    \12\ 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; \13\
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    \13\ 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.

[FR Doc. 2016-19380 Filed 8-11-16; 8:45 am]
 BILLING CODE 3510-DS-P