[Federal Register Volume 81, Number 181 (Monday, September 19, 2016)]
[Notices]
[Pages 64135-64138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22397]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-042]


Stainless Steel Sheet and Strip From the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than Fair 
Value and Preliminary Affirmative Determination of Critical 
Circumstances

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

SUMMARY: The Department of Commerce (Department) preliminarily 
determines that imports of stainless steel sheet and strip (stainless 
sheet and strip) from the People's Republic of China (PRC) are being, 
or are likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation is July 1, 2015, through December 
31, 2015. The estimated dumping margins are shown in the ``Preliminary 
Determination'' section of this notice. We invite interested parties to 
comment on this preliminary determination.

DATES: Effective September 19, 2016.

FOR FURTHER INFORMATION CONTACT: Toni Page at (202) 482-1398 or Lingjun 
Wang at (202) 482-2316, 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.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the notice of initiation of this 
investigation on March 10, 2016.\1\ For a complete description of the 
events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum dated concurrently with and hereby 
adopted by this notice.\2\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix I. The Preliminary Decision 
Memorandum is a public document and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized

[[Page 64136]]

Electronic Service System (ACCESS). ACCESS is available to registered 
users at https://access.trade.gov, and to all parties in the Central 
Records Unit located at Room B8024 of the Department's main building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be found at http://enforcement.trade.gov/frn. The signed 
Preliminary Decision Memorandum and electronic version of Preliminary 
Decision Memorandum are identical in content.
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    \1\ See Stainless Steel Sheet and Strip From the People's 
Republic of China: Initiation of Less Than Fair Value Investigation, 
81 FR 12711 (March 10, 2016) (Initiation Notice).
    \2\ 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, entitled ``Decision 
Memorandum for the Preliminary Determination in the Antidumping Duty 
Investigation of Stainless Steel Sheet and Strip from the People's 
Republic of China'' (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is stainless sheet and 
strip. For a complete description of the scope of this investigation, 
see Appendix II.

Scope Comments

    In accordance with the Preamble to the Department's regulations,\3\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal response submitted to the record, and accompanying 
discussion and analysis of all comments timely received, see the 
Preliminary Scope Memorandum.\5\ The Department is preliminarily not 
modifying the scope language as it appeared in the Initiation Notice.
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \4\ See Initiation Notice.
    \5\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Preliminary Scope Decision Memorandum (September 
9, 2016) (Preliminary Scope Memorandum).
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Postponement of Deadline for the Preliminary Determination

    The Department published the notice of postponement of preliminary 
determination of this investigation on July 7, 2016.\6\ Pursuant to 
sections 733(c)(1)(B)(i) and (ii) of the Tariff Act of 1930, as amended 
(the Act), we postponed the preliminary determination by 50 days. As a 
result, the deadline for the preliminary determination of this 
investigation moved to September 9, 2016.
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    \6\ See Stainless Steel Sheet and Strip From the People's 
Republic of China: Postponement of Preliminary Determination of 
Antidumping Duty Investigation, 81 FR 44277 (July 7, 2016).
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. Furthermore, for purposes of this preliminary 
LTFV determination, the Department continues to treat the PRC as a non-
market economy country within the meaning of section 771(18) of the 
Act. For a full discussion of the Department's methodology, see 
Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances

    On May 6, 2015, pursuant to section 733(e)(1) of the Act and 19 CFR 
351.206, Petitioners timely filed an allegation that critical 
circumstances exist with respect to imports of stainless sheet and 
strip from the PRC. We preliminarily determine that critical 
circumstances exist for the separate rate companies and the PRC-wide 
entity. For a full description of the methodology and results of our 
analysis, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for the respondents that are eligible for a 
separate rate in this investigation.\7\ Policy Bulletin 05.1 describes 
this practice.\8\
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    \7\ See Initiation Notice, 81 FR at 9438-39.
    \8\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available 
on the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    The Department preliminarily determines that the following dumping 
margins exist:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Cash deposit
                   Exporter                                 Producer                Margin  (%)         (%)
----------------------------------------------------------------------------------------------------------------
Taiyuan Ridetaixing Precision Stainless Steel   Taiyuan Ridetaixing Precision              63.86           63.12
 Incorporated Co., Ltd.                          Stainless Steel Incorporated
                                                 Co., Ltd.
Zhangjiagang Pohang Stainless Steel Co., Ltd..  Zhangjiagang Pohang Stainless              63.86           63.12
                                                 Steel Co., Ltd.
PRC-Wide Entity...............................  PRC-Wide Entity.................           76.64           75.90
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    As detailed in the Preliminary Decision Memorandum, Shanxi Taigang 
Stainless Steel Co., Ltd. and Tianjin Taigang Daming Metal Product Co., 
Ltd., two mandatory respondents in this investigation, did not 
demonstrate that they were entitled to a separate rate. Accordingly, we 
consider them to be part of the PRC-wide entity.\9\
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    \9\ See Preliminary Decision Memorandum.
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Suspension of Liquidation

    In accordance with section 733(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 
Appendix II, that are entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Section 733(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 investigation was published. As described above, we 
preliminarily find that critical circumstances exist for the separate 
rate companies and the PRC-wide entity. Therefore, in accordance with 
section 733(e)(2)(A) of the Act, for the separate rate companies and 
the PRC-wide entity, the suspension of liquidation shall apply to 
unliquidated entries of merchandise entered, or withdrawn from 
warehouse, for consumption on or after 90 days prior to the date of 
publication of this notice in the Federal Register. The suspension of 
liquidation will remain in effect until further notice.
    We will also instruct CBP, pursuant to section 733(d)(1)(B) of the 
Act and 19 CFR 351.205(d), to require a cash deposit as follows: \10\ 
(1) The cash deposit rate for the exporter/producer combinations listed 
in the table above will be the rate identified in the table; (2) for 
all combinations of PRC exporters/producers of merchandise

[[Page 64137]]

under consideration that have not received their own separate rate 
above, the cash-deposit rate will be the cash deposit rate established 
for the PRC-wide entity; and (3) for all non-PRC exporters of 
merchandise under consideration which have not received their own 
separate rate above, the cash-deposit rate will be the cash deposit 
rate applicable to the PRC exporter/producer combination that supplied 
that non-PRC exporter. The cash deposit rates were adjusted by the 
countervailing duty attributable to export subsidies.\11\
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    \10\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
    \11\ See Preliminary Decision Memorandum.
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Disclosure and Public Comment

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the date of announcement of this 
preliminary determination in accordance with 19 CFR 351.224(b). Case 
briefs or other written comments may be submitted to the Assistant 
Secretary for Enforcement and Compliance no later than 30 days after 
the publication of this preliminary determination in the Federal 
Register.\12\ Rebuttal briefs, limited to issues raised in case briefs, 
may be submitted no later than five days after the deadline date for 
case briefs.\13\
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    \12\ See 19 CFR 351.309(b)(2)(c)(i).
    \13\ See 19 CFR 351.309, see also 19 CFR 351.303 (for general 
filing requirements).
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    Parties who submit case briefs or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) A statement 
of the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\14\ This summary should be limited to five pages total, 
including footnotes.
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    \14\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Interested parties who wish to request a hearing must do so in 
writing within 30 days after the publication of this preliminary 
determination in the Federal Register.\15\ Requests should contain the 
party's name, address, and telephone number; the number of 
participants; and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a date, time, and location to be 
determined. Parties will be notified of the date, time, and location of 
any hearing.
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    \15\ See 19 CFR 351.310(c).
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    Parties must file their case and rebuttal briefs, and any requests 
for a hearing, electronically using ACCESS.\16\ Electronically-filed 
documents must be received successfully in their entirety by 5:00 p.m. 
Eastern Time on the due dates established above.\17\
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    \16\ See 19 CFR 351.303(b)(2)(i).
    \17\ See 19 CFR 351.303(b)(1).
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, we are notifying the 
International Trade Commission (ITC) of our preliminary determination 
of sales at LTFV. If our final determination is affirmative, the ITC 
will determine before the later of 120 days after the date of this 
preliminary determination or 45 days after our final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(I) of the Act and 19 CFR 351.205(c).

    Dated: September 9, 2016.
Christian Marsh,
 Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Respondent Selection
VII. Critical Circumstances
    A. Legal Framework
    B. Critical Circumstances Allegation
    C. Analysis
VIII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Separate Rates
    C. The PRC-Wide Entity
    D. Application of Facts Available and Adverse Inferences
IX. Adjustment Under Section 777A(F) of the Act
X. Adjustment to Cash Deposit Rate for Export Subsidies
XI. Verification
XII. Conclusion
Table of Authorities

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.
    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,

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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. 2016-22397 Filed 9-16-16; 8:45 am]
BILLING CODE 3510-DS-P