[Federal Register Volume 81, Number 177 (Tuesday, September 13, 2016)]
[Notices]
[Pages 62871-62874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21999]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-048]


Certain Carbon and Alloy Steel Cut-to-Length Plate From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
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/exporters of certain carbon and alloy steel cut-to-length 
plate (CTL plate) from the People's Republic of China (PRC). The period 
of investigation is January 1, 2015, through December 31, 2015. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Effective September 13, 2016.

FOR FURTHER INFORMATION CONTACT: 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) 482-5260.

SUPPLEMENTARY INFORMATION: 

Alignment of Final Countervailing Duty (CVD) Determination With Final 
Antidumping Duty (AD) Determination

    On the same day the Department initiated this CVD investigation, 
the Department also initiated CVD investigations of CTL plate from 
Brazil and the Republic of Korea (Korea) and AD investigations of CTL 
plate from Austria, Belgium, Brazil, France, Germany, Italy, Japan, 
Korea, the PRC, South Africa, Taiwan, and Turkey.\1\ The CVD 
investigation covers the same merchandise as the AD investigations of 
CTL plate from Austria, Belgium, Brazil, France, Germany, Italy, Japan, 
South Africa, Taiwan, and Turkey.\2\
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    \1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate From 
Brazil, the People's Republic of China, and the Republic of Korea: 
Initiation of Countervailing Duty Investigations, 81 FR 27098 (May 
5, 2016) (Initiation Notice); see also Certain Carbon and Alloy 
Steel Cut-To-Length Plate From Austria, Belgium, Brazil, France, the 
Federal Republic of Germany, Italy, Japan, the Republic of Korea, 
the People's Republic of China, South Africa, Taiwan, and the 
Republic of Turkey: Initiation of Less-Than-Fair-Value 
Investigations, 81 FR 27089 (May 5, 2016).
    \2\ For a complete case history, see Memorandum from Gary 
Taverman, Associate Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Decision Memorandum for the Preliminary Affirmative Determination: 
Countervailing Duty Investigation of Certain Carbon and Alloy Steel 
Cut-to-Length Plate from the People's Republic of China,'' dated 
concurrently with this notice and hereby incorporated by reference, 
and adopted by this notice (Preliminary Decision Memorandum).
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    On August 25, 2016, in accordance with section 705(a)(1) of the 
Tariff Act of 1930, as amended (Act), Petitioners \3\ requested 
alignment of the final CVD determination with the final AD 
determination of CTL plate from the PRC. Therefore, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination with the final AD determination of CTL 
plate from Austria, Belgium, France, Germany, Italy, Japan, and 
Taiwan.\4\ Consequently, we intend to issue the final CVD determination 
on the same date as the final AD determination,

[[Page 62872]]

which is currently scheduled to be issued no later than January 18, 
2017, unless postponed.\5\
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    \3\ Petitioners in this investigation are ArcelorMittal USA LLC, 
Nucor Corporation, and SSAB Enterprises LLC.
    \4\ See Letter to the Secretary of Commerce from Petitioners, 
``Carbon and Alloy Steel Cut-to-Length Plate from People's Republic 
of China and Korea--Petitioners' Request to Align the Countervailing 
Duty Final Determinations with the Companion Antidumping Duty Final 
Determination,'' (August 25, 2016).
    \5\ The AD determinations of CTL plate from Brazil, South 
Africa, and Turkey were not postponed. See Certain Carbon and Alloy 
Steel Cut-to-Length Plate Austria, Belgium, France, the Federal 
Republic of Germany, Italy, Japan, the Republic of Korea, the 
People's Republic of China, and Taiwan: Postponement of Preliminary 
Determinations of Antidumping Duty Investigations, 81 FR 59185 
(August 29, 2016).
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Scope of the Investigation

    The scope of this investigation covers CTL plate from the PRC. For 
a complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    In accordance with the Preamble to the Department's regulations,\6\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\7\ Certain interested 
parties commented on the scope of this investigation as it appeared in 
the Initiation Notice, as well as additional language proposed by the 
Department. For a summary of the product coverage comments and rebuttal 
responses submitted to the record for this preliminary determination, 
and accompanying discussion and analysis of all comments timely 
received, see the Department's Scope Memorandum issued concurrently 
with this notice.\8\ The Department is preliminarily modifying the 
scope language as it appeared in the Initiation Notice to clarify the 
exclusion for stainless steel plate.\9\ The Department is also 
correcting two tariff numbers that were misidentified in the Petitions 
and in the Initiation Notice.\10\
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    \6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \7\ See Initiation Notice, 81 FR at 27099.
    \8\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Carbon and Alloy Steel Cut-to-Length Plate From Austria, 
Belgium, Brazil, the People's Republic of China, France, the Federal 
Republic of Germany, Italy, Japan, the Republic of Korea, the 
Republic of South Africa, Taiwan, and Turkey: Scope Comments 
Decision Memorandum for the Preliminary Determinations'' 
(Preliminary Scope Decision Memorandum) dated concurrently with this 
preliminary determination.
    \9\ Specifically, the revised scope now states that stainless 
steel plate must not contain more than 1.2 percent of carbon by 
weight.
    \10\ Id.
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Methodology

    The Department is conducting this CVD investigation in accordance 
with section 701 of the Act. For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memorandum.\11\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II 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 on the 
Internet at http://enforcement.trade.gov/frn/. The signed Preliminary 
Decision Memorandum and the electronic version of the Preliminary 
Decision Memorandum are identical in content.
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    \11\ See Preliminary Decision Memorandum.
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
determined an estimated countervailable subsidy rate for each producer/
exporter of the subject merchandise individually investigated. We 
preliminarily determine these rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Jiangyin Xingcheng Special Steel Works Co. Ltd..........          210.50
Hunan Valin Xiangtan Iron & Steel.......................          210.50
Viewer Development Co., Ltd.............................          210.50
All Others..............................................          210.50
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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 CTL from the PRC as described in the scope of the 
investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Pursuant to 19 CFR 351.205(d), the Department will 
instruct CBP to require a cash deposit equal to the amounts indicated 
above.

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)(3) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 75 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.\12\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\13\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \12\ See 19 CFR 351.224(b).
    \13\ See 19 CFR 351.309(c)-(d) and 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: September 6, 2016.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain carbon 
and alloy steel hot-rolled or forged flat plate products not in 
coils, whether or not painted, varnished, or coated with plastics or 
other non-metallic substances (cut-to-length plate). Subject 
merchandise includes plate that is produced by being cut-to-length 
from coils or from other discrete length plate and plate that is 
rolled or forged into a discrete length. The products covered 
include (1) Universal mill plates (i.e., flat-rolled products rolled 
on four faces or in a closed box pass, of a width exceeding 150 mm 
but not exceeding 1250 mm, and of a thickness of not less than 4 mm, 
which are not in coils and without patterns in relief), and (2) hot-
rolled or forged flat steel products of a thickness of 4.75 mm or 
more and of a width which exceeds 150 mm and measures at least twice 
the thickness, and which are not in coils, whether or not with 
patterns in relief. The covered products described above may be 
rectangular, square, circular or other shapes and include products 
of either rectangular or non-rectangular cross-section where such 
non-rectangular cross-section is achieved subsequent to the rolling 
process, i.e.,

[[Page 62873]]

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, the following rules apply:
    (1) Except where otherwise stated where the nominal and actual 
thickness or width measurements vary, a product from a given subject 
country 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 product is already covered by 
an order existing on that specific country (e.g., orders on hot-
rolled flat-rolled steel); 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; and (2) the carbon content is 2 
percent or less by weight.
    Subject merchandise includes cut-to-length plate that has been 
further processed in the subject country or a third country, 
including but not limited to pickling, oiling, levelling, annealing, 
tempering, temper rolling, skin passing, painting, varnishing, 
trimming, cutting, punching, beveling, 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 cut-to-length plate.
    All products that meet the written physical description, are 
within the scope of this investigation unless specifically excluded 
or covered by the scope of an existing order. The following products 
are outside of, and/or specifically excluded from, the scope of this 
investigation:
    (1) Products clad, plated, or coated with metal, whether or not 
painted, varnished or coated with plastic or other non-metallic 
substances;
    (2) military grade armor plate certified to one of the following 
specifications or to a specification that references and 
incorporates one of the following specifications:
     MIL-A-12560,
     MIL-DTL-12560H,
     MIL-DTL-12560J,
     MIL-DTL-12560K,
     MIL-DTL-32332,
     MIL-A-46100D,
     MIL-DTL-46100-E,
     MIL-46177C,
     MIL-S-16216K Grade HY80,
     MIL-S-16216K Grade HY100,
     MIL-S-24645A HSLA-80;
     MIL-S-24645A HSLA-100,
     T9074-BD-GIB-010/0300 Grade HY80,
     T9074-BD-GIB-010/0300 Grade HY100,
     T9074-BD-GIB-010/0300 Grade HSLA80,
     T9074-BD-GIB-010/0300 Grade HSLA100, and
     T9074-BD-GIB-010/0300 Mod. Grade HSLA115,

except that any cut-to-length plate certified to one of the above 
specifications, or to a military grade armor specification that 
references and incorporates one of the above specifications, will 
not be excluded from the scope if it is also dual- or multiple-
certified to any other non-armor specification that otherwise would 
fall within the scope of this order;
    (3) stainless steel plate, containing 10.5 percent or more of 
chromium by weight and not more than 1.2 percent of carbon by 
weight;
    (4) CTL plate meeting the requirements of ASTM A-829, Grade E 
4340 that are over 305 mm in actual thickness;
    (5) Alloy forged and rolled CTL plate greater than or equal to 
152.4 mm in actual thickness meeting each of the following 
requirements:
    (a) Electric furnace melted, ladle refined & vacuum degassed and 
having a chemical composition (expressed in weight percentages):
     Carbon 0.23-0.28,
     Silicon 0.05-0.20,
     Manganese 1.20-1.60,
     Nickel not greater than 1.0,
     Sulfur not greater than 0.007,
     Phosphorus not greater than 0.020,
     Chromium 1.0-2.5,
     Molybdenum 0.35-0.80,
     Boron 0.002-0.004,
     Oxygen not greater than 20 ppm,
     Hydrogen not greater than 2 ppm, and
     Nitrogen not greater than 60 ppm;
    (b) With a Brinell hardness measured in all parts of the product 
including mid thickness falling within one of the following ranges:
    (i) 270-300 HBW,
    (ii) 290-320 HBW, or
    (iii) 320-350 HBW;
    (c) Having cleanliness in accordance with ASTM E45 method A 
(Thin and Heavy): A not exceeding 1.5, B not exceeding 1.0, C not 
exceeding 0.5, D not exceeding 1.5; and
    (d) Conforming to ASTM A578-S9 ultrasonic testing requirements 
with acceptance criteria 2 mm flat bottom hole;
    (6) Alloy forged and rolled steel CTL plate over 407 mm in 
actual thickness and meeting the following requirements:
    (a) Made from Electric Arc Furnace melted, Ladle refined & 
vacuum degassed, alloy steel with the following chemical composition 
(expressed in weight percentages):
     Carbon 0.23-0.28,
     Silicon 0.05-0.15,
     Manganese 1.20-1.50,
     Nickel not greater than 0.4,
     Sulfur not greater than 0.010,
     Phosphorus not greater than 0.020,
     Chromium 1.20-1.50,
     Molybdenum 0.35-0.55,
     Boron 0.002-0.004,
     Oxygen not greater than 20 ppm,
     Hydrogen not greater than 2 ppm, and
     Nitrogen not greater than 60 ppm;
    (b) Having cleanliness in accordance with ASTM E45 method A 
(Thin and Heavy): A not exceeding 1.5, B not exceeding 1.5, C not 
exceeding 1.0, D not exceeding 1.5;
    (c) Having the following mechanical properties:
    (i) With a Brinell hardness not more than 237 HBW measured in 
all parts of the product including mid thickness; and having a Yield 
Strength of 75 ksi min and UTS 95 ksi or more, Elongation of 18% or 
more and Reduction of area 35% or more; having charpy V at -75 
degrees F in the longitudinal direction equal or greater than 15 ft. 
lbs (single value) and equal or greater than 20 ft. lbs (average of 
3 specimens) and conforming to the requirements of NACE MR01-75; or
    (ii) With a Brinell hardness not less than 240 HBW measured in 
all parts of the product including mid thickness; and having a Yield 
Strength of 90 ksi min and UTS 110 ksi or more, Elongation of 15% or 
more and Reduction of area 30% or more; having charpy V at -40 
degrees F in the longitudinal direction equal or greater than 21 ft. 
lbs (single value) and equal or greater than 31 ft. lbs (average of 
3 specimens);
    (d) Conforming to ASTM A578-S9 ultrasonic testing requirements 
with acceptance criteria 3.2 mm flat bottom hole; and
    (e) Conforming to magnetic particle inspection in accordance 
with AMS 2301;
    (7) Alloy forged and rolled steel CTL plate over 407 mm in 
actual thickness and meeting the following requirements:
    (a) Made from Electric Arc Furnace melted, ladle refined & 
vacuum degassed, alloy steel with the following chemical composition 
(expressed in weight percentages):
     Carbon 0.25-0.30,
     Silicon not greater than 0.25,
     Manganese not greater than 0.50,
     Nickel 3.0-3.5,
     Sulfur not greater than 0.010,
     Phosphorus not greater than 0.020,
     Chromium 1.0-1.5,
     Molybdenum 0.6-0.9,
     Vanadium 0.08 to 0.12
     Boron 0.002-0.004,
     Oxygen not greater than 20 ppm,
     Hydrogen not greater than 2 ppm, and
     Nitrogen not greater than 60 ppm.
    (b) Having cleanliness in accordance with ASTM E45 method A 
(Thin and Heavy): A not exceeding 1.0(t) and 0.5(h), B not exceeding 
1.5(t) and 1.0(h), C not exceeding 1.0(t) and 0.5(h), and D not 
exceeding 1.5(t) and 1.0(h);
    (c) Having the following mechanical properties: A Brinell 
hardness not less than 350 HBW measured in all parts of the product 
including mid thickness; and having a Yield Strength of 145ksi or 
more and UTS 160ksi or more, Elongation of 15% or more and Reduction 
of area 35% or more; having charpy V at -40 degrees F in the 
transverse direction equal or greater than 20 ft. lbs (single value) 
and equal or greater than 25 ft. lbs (average of 3 specimens);
    (d) Conforming to ASTM A578-S9 ultrasonic testing requirements 
with acceptance criteria 3.2 mm flat bottom hole; and
    (e) Conforming to magnetic particle inspection in accordance 
with AMS 2301.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7208.40.3030, 7208.40.3060, 
7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 
7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 
7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, and 
7226.91.5000.

[[Page 62874]]

    The products subject to the investigation may also enter under 
the following HTSUS item numbers: 7208.40.6060, 7208.53.0000, 
7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 
7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 
7214.10.0000, 7214.30.0010, 7214.30.0080, 7214.91.0015, 
7214.91.0060, 7214.91.0090, 7225.11.0000, 7225.19.0000, 
7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 
7225.99.0010, 7225.99.0090, 7226.11.1000, 7226.11.9060, 
7226.19.1000, 7226.19.9000, 7226.91.0500, 7226.91.1530, 
7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 
7226.91.8000, and 7226.99.0180.
    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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Application of the CVD Law to Imports From the PRC
VIII. Subsidies Valuation
IX. Use of Fact Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Conclusion

[FR Doc. 2016-21999 Filed 9-12-16; 8:45 am]
BILLING CODE 3510-DS-P