[Federal Register Volume 81, Number 182 (Tuesday, September 20, 2016)]
[Notices]
[Pages 64436-64439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22614]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-844, C-533-866, C-580-882]


Certain Cold-Rolled Steel Flat Products from Brazil, India, and 
the Republic of Korea: Amended Final Affirmative Countervailing Duty 
Determination and Countervailing Duty Order (the Republic of Korea) and 
Countervailing Duty Orders (Brazil and India)

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the Department) and the International Trade Commission (ITC), 
the Department is issuing countervailing duty (CVD) orders on certain 
cold-rolled steel flat products (cold-rolled steel) from Brazil, India, 
and the Republic of Korea (Korea). In addition, the Department is 
amending its final affirmative determination with respect to Korea to 
correct the rates assigned to Hyundai Steel Co., Ltd. (Hyundai Steel), 
POSCO, and All Others.

DATES: Effective September 20, 2016.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin at (202) 482-6478 
(Brazil); Robert Bolling at (202) 482-3434 (India); and Emily Maloof at 
(202) 482-5649 (Korea); AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 705(a) and 777(i)(1) of the Tariff Act 
of 1930, as amended (the Act), on July 20, 2016, the Department made 
final determinations that countervailable subsidies are being provided 
to producers and exporters of cold-rolled steel from Brazil, India, and 
Korea. Pursuant to section 705(d) of the Act, the Department published 
the affirmative final determinations on July 29, 2016.\1\
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    \1\ See Countervailing Duty Investigation of Certain Cold-Rolled 
Steel Flat Products from Brazil: Final Affirmative Determination, 81 
FR 49940 (July 29, 2016) (Brazil CVD Final Determination); 
Countervailing Duty Investigation of Certain Cold-Rolled Steel Flat 
Products from India: Final Affirmative Determination, 81 FR 49932 
(July 29, 2016) (India CVD Final Determination); and Countervailing 
Duty Investigation of Certain Cold-Rolled Steel Flat Products from 
the Republic of Korea: Final Affirmative Determination, 81 FR 49943 
(July 29, 2016) (Korea CVD Final Determination).
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    On July 27, 2016, Usinas Siderurgicas de Minas Gerais S.A. 
(Usiminas) timely filed ministerial error comments, alleging that the 
Department made errors in the final determination of the CVD 
investigation of cold-rolled steel from Brazil. No other interested 
party submitted ministerial error allegations or rebuttals to Usiminas' 
submission. We analyzed the allegations submitted by Usiminas and 
determined that only one of the three alleged errors is a ministerial 
error, as defined by section 705(e) of the Act, and 19 CFR 
351.224(f).\2\ However, we determined that correcting the ministerial 
error within the calculations does not change the overall rate for 
Usiminas.\3\
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    \2\ See Department Memorandum regarding ``Countervailing Duty 
Investigation of Certain Cold-Rolled Steel Flat Products from 
Brazil: Ministerial Error Allegation for the Final Determination,'' 
dated August 24, 2016 (Brazil Ministerial Error Decision 
Memorandum).
    \3\ Id.
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    On July 27, 2016, Hyundai Steel and POSCO timely filed ministerial 
error comments, alleging that the Department made errors in the final 
determination of the CVD investigation of cold-rolled steel from Korea. 
No other interested party submitted ministerial error allegations or 
rebuttals to Hyundai Steel's and POSCO's submissions. We analyzed the 
allegations submitted by

[[Page 64437]]

Hyundai Steel and POSCO, and determined that ministerial errors exist, 
as defined by section 705(e) of the Act and 19 CFR 351.224(f).\4\ See 
``Amendment to the Korea Final Determination'' section below for 
further discussion.
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    \4\ See Department Memorandum regarding ``Countervailing Duty 
Investigation: Certain Cold-Rolled Steel Flat Products from the 
Republic of Korea: Response to Ministerial Error Comments filed by 
Hyundai Steel Co., Ltd. and POSCO,'' dated August 24, 2016 (Korea 
Ministerial Error Decision Memorandum).
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    On September 12, 2016, the ITC notified the Department of its final 
determinations that an industry in the United States is materially 
injured by reason of subsidized imports of subject merchandise from 
Brazil and Korea, within the meaning of section 705(b)(1)(A)(i) of the 
Act, and is threatened with material injury by reason of subsidized 
imports of subject merchandise from India, within the meaning of 
section 705(b)(1)(A)(ii) of the Act.\5\
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    \5\ See Letter to Christian Marsh, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, from Irving A. 
Williamson, Chairman, U.S. International Trade Commission, regarding 
certain cold-rolled steel flat products from Brazil, India, Korea, 
Russia, and the United Kingdom (September 12, 2016) (ITC Letter); 
see also Cold-Rolled Steel Flat Products from Brazil, India, Korea, 
Russia, and the United Kingdom, USITC Investigation Nos. 701-TA-540, 
542-544 and 731-TA-1283, 1285, 1287, and 1289-1290 (Final), USITC 
Publication 4637 (September 2016). The Department also issued an 
affirmative final CVD determination with regard to cold-rolled steel 
flat products from the Russian Federation, see Countervailing Duty 
Investigation of Certain Cold-Rolled Steel Flat Products from the 
Russian Federation: Final Affirmative Countervailing Duty 
Determination and Final Negative Critical Circumstances 
Determination, 81 FR 49935 (July 29, 2016), and accompanying Issues 
and Decision Memorandum. However, the ITC notified the Department 
that imports of cold-rolled steel from Russia that are subsidized by 
the Government of Russia are negligible.
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Scope of the Orders

    The products covered by these orders are certain cold-rolled steel 
flat products. For a complete description of the scope of the orders, 
see Appendix I.

Amendment to the Korea CVD Final Determination

    As discussed above, after analyzing the comments received from 
Hyundai Steel and POSCO, we determined, in accordance with section 
705(e) of the Act and 19 CFR 351.224(f), that we made ministerial 
errors with regard to certain calculations in the Korea CVD Final 
Determination with respect to Hyundai Steel and POSCO. This amended 
final CVD determination corrects these errors and revises the ad 
valorem subsidy rate for Hyundai Steel to 3.89 percent (from 3.91 
percent), for POSCO to 59.72 percent (from 58.36 percent), and for the 
All Others rate to 3.89 percent (from 3.91 percent).\6\
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    \6\ See Korea Ministerial Error Decision Memorandum. See also 
Department Memorandum regarding ``Countervailing Duty Investigation 
of Certain Cold-Rolled Steel Flat Products from the Republic of 
Korea: Amended Final Determination Calculation Memorandum for 
POSCO,'' dated August 24, 2016. The All Others rate has changed 
because it was determined by the rate calculated for Hyundai Steel, 
which has now been corrected. POSCO's final subsidy rate was 
excluded from the All Others rate because it was determined entirely 
under section 776 of the Act. See section 705(c)(5)(A)(i) of the 
Act.
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Countervailing Duty Orders

    In accordance with sections 705(b)(1)(A)(i), 705(b)(1)(A)(ii), and 
705(d) of the Act, the ITC has notified the Department of its final 
determinations that the industry in the United States producing cold-
rolled steel is materially injured by reason of subsidized imports of 
cold-rolled steel from Brazil and Korea, and is threatened with 
material injury by reason of subsidized imports of cold-rolled steel 
from India.\7\ Therefore, in accordance with section 705(c)(2) of the 
Act, we are publishing these CVD orders.
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    \7\ See ITC Letter.
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Brazil

    As a result of the ITC's final determinations, in accordance with 
section 706(a) of the Act, the Department will direct U.S. Customs and 
Border Protection (CBP) to assess, upon further instruction by the 
Department, countervailing duties on unliquidated entries of cold-
rolled steel from Brazil entered, or withdrawn from warehouse, for 
consumption on or after December 22, 2015, the date on which the 
Department published its preliminary affirmative countervailing duty 
determinations in the Federal Register,\8\ and before April 20, 2016, 
the date on which the Department instructed CBP to discontinue the 
suspension of liquidation in accordance with section 703(d) of the Act. 
Section 703(d) of the Act states that the suspension of liquidation 
pursuant to a preliminary determination may not remain in effect for 
more than four months. Therefore, entries of cold-rolled steel from 
Brazil made on or after April 20, 2016, and prior to the date of 
publication of the ITC's final determination in the Federal Register, 
are not liable for assessment of countervailing duties due to the 
Department's discontinuation, effective April 20, 2016, of the 
suspension of liquidation.
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    \8\ See Countervailing Duty Investigation of Certain Cold-Rolled 
Steel Flat Products from Brazil: Preliminary Affirmative 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination, 80 FR 79569 (December 22, 2015) 
(Brazil CVD Preliminary Determination).
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India

    According to section 706(b)(2) of the Act, countervailing duties 
shall be assessed on subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
ITC's notice of final determination if that determination is based upon 
the threat of material injury, other than threat of material injury as 
described in section 706(b)(1) of the Act. Section 706(b)(1) of the Act 
states, ``{i{time} f the Commission, in its final determination under 
section 705(b), finds material injury or threat of material injury 
which, but for the suspension of liquidation under section 703(d)(2), 
would have led to a finding of material injury, then entries of the 
merchandise subject to the countervailing duty order, the liquidation 
of which has been suspended under section 703(d)(2), shall be subject 
to the imposition of countervailing duties under section 701(a).'' In 
addition, section 706(b)(2) of the Act requires CBP to refund any cash 
deposits of estimated countervailing duties posted before the date of 
publication of the ITC's final affirmative determination, if the ITC's 
final determination is based on threat other than the threat described 
in section 706(b)(1) of the Act. Because the ITC's final determination 
with regard to imports of cold-rolled steel from India is based on the 
threat of material injury and is not accompanied by a finding that 
injury would have resulted but for the imposition of suspension of 
liquidation of entries since the publication of the Department's India 
CVD Preliminary Determination in the Federal Register,\9\ section 
706(b)(2) of the Act applies.
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    \9\ See Countervailing Duty Investigation of Certain Cold-Rolled 
Steel Flat Products from India: Preliminary Affirmative 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination, 80 FR 79562 (December 22, 2015) 
(India CVD Preliminary Determination).
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Korea

    Because the Department's preliminary determination in the Korea CVD 
investigation was negative, we did not instruct CBP to discontinue the 
suspension of liquidation with regard to entries of cold-rolled steel 
from Korea.\10\

[[Page 64438]]

Therefore, with regard to Korea, we will direct CBP to assess, upon 
further instruction by the Department, countervailing duties on 
unliquidated entries of cold-rolled steel entered, or withdrawn from 
warehouse, for consumption on or after July 29, 2016, the date on which 
the Department published the Korea CVD Final Determination in the 
Federal Register.
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    \10\ See Countervailing Duty Investigation of Certain Cold-
Rolled Steel Flat Products from the Republic of Korea: Preliminary 
Negative Determination and Alignment of Final Determination With 
Final Antidumping Duty Determination, 80 FR 79567 (December 22, 
2015) (Korea CVD Preliminary Determination).
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Suspension of Liquidation

    In accordance with section 706 of the Act, we will direct CBP to 
reinstitute the suspension of liquidation of cold-rolled steel from 
Brazil and India effective on the date of publication of the ITC's 
notice of final determinations in the Federal Register, and to continue 
the suspension of liquidation of cold-rolled steel from Korea, 
effective on the date of publication of the Department's notice of 
final determination in the Federal Register. We will also direct CBP to 
assess, upon further instruction by the Department, pursuant to section 
706(a)(1) of the Act, countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rates for the subject merchandise.
    On or after the date of publication of the ITC's final injury 
determinations in the Federal Register, CBP must require, at the same 
time as importers would normally deposit estimated duties on this 
merchandise, a cash deposit equal to the rates noted below:

------------------------------------------------------------------------
                                                          Subsidy rate
            Exporter/Producer from Brazil                  (percent)
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Companhia Siderurgica Nacional (CSN).................              11.31
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas)..              11.09
All Others...........................................              11.20
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------------------------------------------------------------------------
                                                          Subsidy rate
             Exporter/Producer from India                  (percent)
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JSW Steel Limited and JSW Steel Coated Products                    10.00
 Limited.............................................
All Others...........................................              10.00
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------------------------------------------------------------------------
                                                          Subsidy rate
             Exporter/Producer from Korea                  (percent)
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POSCO................................................              59.72
Hyundai Steel Co., Ltd...............................               3.89
All Others...........................................               3.89
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Termination of the Suspension of Liquidation

    The Department will instruct CBP to terminate the suspension of 
liquidation for entries of cold-rolled steel from India, entered or 
withdrawn from warehouse, for consumption prior to the publication of 
the ITC's notice of final determination. The Department will also 
instruct CBP to refund any cash deposits made with respect to entries 
of cold-rolled steel entered, or withdrawn from warehouse, for 
consumption on or after December 22, 2015 (i.e., the date of 
publication of the India CVD Preliminary Determination), but before 
April 20, 2016, (i.e., the date suspension of liquidation was 
discontinued in accordance with section 703(d) of the Act).

Notifications to Interested Parties

    This notice constitutes the CVD orders with respect to cold-rolled 
steel from Brazil, India, and Korea, pursuant to section 706(a) of the 
Act. Interested parties may contact the Department's Central Records 
Unit, Room B8024 of the main Commerce building, for copies of an 
updated listed of CVD orders currently in effect.
    These orders are issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: September 14, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

    The products covered by these orders are certain cold-rolled 
(cold-reduced), flat-rolled steel products, 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 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 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 covered also include products not in coils (e.g., in 
straight lengths) of a thickness of 4.75 mm or more and a width 
exceeding 150 mm and measuring at least twice 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 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.
    Steel products included in the scope of these orders 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 (also called wolfram), or
     0.80 percent of molybdenum, or
     0.10 percent of niobium (also called columbium), 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, 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. Motor lamination steels contain 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 cold-rolled steel that has been 
further processed in a third country, including but not limited to 
annealing, tempering, 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 cold-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 order 
unless specifically

[[Page 64439]]

excluded. The following products are outside of and/or specifically 
excluded from the scope of these orders:
     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\
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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 steel;\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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     Grain-oriented electrical steels (GOES) as defined in 
the final determination of the U.S. Department of Commerce in Grain-
Oriented Electrical Steel from Germany, Japan, and Poland.\14\
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    \14\ See Grain-Oriented Electrical Steel from Germany, Japan, 
and Poland: Final Determinations of Sales at Less Than Fair Value 
and Certain Final Affirmative Determination of Critical 
Circumstances, 79 FR 42501, 42503 (July 22, 2014). This 
determination defines grain-oriented electrical steel as ``a flat-
rolled alloy steel product containing by weight at least 0.6 percent 
but not more than 6 percent of silicon, not more than 0.08 percent 
of carbon, not more than 1.0 percent of aluminum, and no other 
element in an amount that would give the steel the characteristics 
of another alloy steel, in coils or in straight lengths.''
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     Non-Oriented Electrical Steels (NOES), as defined in 
the antidumping orders issued by the U.S. Department of Commerce in 
Non-Oriented Electrical Steel from the People's Republic of China, 
Germany, Japan, the Republic of Korea, Sweden, and Taiwan.\15\
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    \15\ See Non-Oriented Electrical Steel from the People's 
Republic of China, Germany, Japan, the Republic of Korea, Sweden, 
and Taiwan: Antidumping Duty Orders, 79 FR 71741, 71741-42 (December 
3, 2014). The orders define NOES as ``cold-rolled, flat-rolled, 
alloy steel products, whether or not in coils, regardless of width, 
having an actual thickness of 0.20 mm or more, in which the core 
loss is substantially equal in any direction of magnetization in the 
plane of the material. The term `substantially equal' means that the 
cross grain direction of core loss is no more than 1.5 times the 
straight grain direction (i.e., the rolling direction) of core loss. 
NOES has a magnetic permeability that does not exceed 1.65 Tesla 
when tested at a field of 800 A/m (equivalent to 10 Oersteds) along 
(i.e., parallel to) the rolling direction of the sheet (i.e., B800 
value). NOES contains by weight more than 1.00 percent of silicon 
but less than 3.5 percent of silicon, not more than 0.08 percent of 
carbon, and not more than 1.5 percent of aluminum. NOES has a 
surface oxide coating, to which an insulation coating may be 
applied.''
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    The products subject to these orders are currently classified in 
the Harmonized Tariff Schedule of the United States (HTSUS) under 
item numbers: 7209.15.0000, 7209.16.0030, 7209.16.0060, 
7209.16.0070, 7209.16.0091, 7209.17.0030, 7209.17.0060, 
7209.17.0070, 7209.17.0091, 7209.18.1530, 7209.18.1560, 
7209.18.2510, 7209.18.2520, 7209.18.2580, 7209.18.6020, 
7209.18.6090, 7209.25.0000, 7209.26.0000, 7209.27.0000, 
7209.28.0000, 7209.90.0000, 7210.70.3000, 7211.23.1500, 
7211.23.2000, 7211.23.3000, 7211.23.4500, 7211.23.6030, 
7211.23.6060, 7211.23.6090, 7211.29.2030, 7211.29.2090, 
7211.29.4500, 7211.29.6030, 7211.29.6080, 7211.90.0000, 
7212.40.1000, 7212.40.5000, 7225.50.6000, 7225.50.8080, 
7225.99.0090, 7226.92.5000, 7226.92.7050, and 7226.92.8050.
    The products subject to the orders may also enter under the 
following HTSUS numbers: 7210.90.9000, 7212.50.0000, 7215.10.0010, 
7215.10.0080, 7215.50.0016, 7215.50.0018, 7215.50.0020, 
7215.50.0061, 7215.50.0063, 7215.50.0065, 7215.50.0090, 
7215.90.5000, 7217.10.1000, 7217.10.2000, 7217.10.3000, 
7217.10.7000, 7217.90.1000, 7217.90.5030, 7217.90.5060, 
7217.90.5090, 7225.19.0000, 7226.19.1000, 7226.19.9000, 
7226.99.0180, 7228.50.5015, 7228.50.5040, 7228.50.5070, 
7228.60.8000, and 7229.90.1000.
    The HTSUS subheadings above are provided for convenience and 
U.S. Customs purposes only. The written description of the scope of 
the orders is dispositive.

[FR Doc. 2016-22614 Filed 9-19-16; 8:45 am]
 BILLING CODE 3510-DS-P