[Federal Register Volume 81, Number 191 (Monday, October 3, 2016)]
[Notices]
[Pages 67960-67962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23835]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-846, C-580-884]


Certain Hot-Rolled Steel Flat Products From Brazil and the 
Republic of Korea: Amended Final Affirmative Countervailing Duty 
Determinations and Countervailing Duty Orders

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 
hot-rolled steel flat products (hot-rolled steel) from Brazil and the 
Republic of Korea (Korea). In addition, the Department is amending its 
final affirmative determination with respect to Korea to correct the 
rate assigned to POSCO.

DATES: Effective October 3, 2016.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin at (202) 482-6478 
(Brazil); and Katie Marksberry at (202) 482-7906 (Korea); AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with section 705(a) of the Tariff Act of 1930, as 
amended (the Act), and 19 CFR 351.210(c), on August 4, 2016, the 
Department made final determinations that countervailable subsidies are 
being provided to producers and exporters of hot-rolled steel from 
Brazil and Korea.\1\ Pursuant to section 705(d) of the Act, the 
Department published the affirmative final determinations on August 12, 
2016.\2\
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    \1\ Pursuant to section 735(c)(2) of the Act, we have terminated 
the countervailing duty investigation of hot-rolled steel from 
Turkey because the ITC found imports subsidized by the government of 
Turkey to be negligible, see Letter to Christian Marsh, Deputy 
Assistant Secretary of Commerce for Enforcement and Compliance, from 
Irving Williamson, Chairman of the U.S. International Trade 
Commission, regarding antidumping and countervailing duty 
investigations concerning imports of certain hot-rolled steel flat 
products from Australia, Brazil, Japan, Korea, the Netherlands, 
Turkey, and the United Kingdom (Investigation Nos. 701-TA-545-547 
and 731-TA-1291-1297 (September 26, 2016) (ITC Letter).
    \2\ See Countervailing Duty Investigation of Certain Hot-Rolled 
Steel Flat Products from Brazil: Final Affirmative Determination, 
and Final Determination of Critical Circumstances, in Part, 81 FR 
53416 (August 12, 2016) (Brazil CVD Final Determination); 
Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat 
Products from the Republic of Korea: Final Affirmative 
Determination, 81 FR 53439 (August 12, 2016) (Korea CVD Final 
Determination); Countervailing Duty Investigation of Certain Hot-
Rolled Steel Flat Products From the Republic of Turkey: Final 
Affirmative Determination, 81 FR 53433 (August 12, 2016).
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    On August 12, 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 hot-rolled steel 
from Korea. On August 17, 2016, Nucor Corporation (Petitioner) filed 
rebuttal comments. We analyzed the allegations submitted by Hyundai 
Steel and POSCO, and determined that one ministerial error exists, as 
defined by section 705(e) of the Act and 19 CFR 351.224(f).\3\ See 
``Amendment to the Korea Final Determination'' section below for 
further discussion.
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    \3\ See Department Memorandum regarding ``Countervailing Duty 
Investigation: Certain Hot-Rolled Steel Flat Products from the 
Republic of Korea: Response to Ministerial Error Comments filed by 
Hyundai Steel Co., Ltd. and POSCO,'' dated August 23, 2016 (Korea 
Ministerial Error Decision Memorandum).
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    On September 26, 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 that critical circumstances do not exist with respect to 
imports of subject merchandise from Brazil.\4\
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    \4\ See ITC Letter.
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Scope of the Orders

    The products covered by these orders are certain hot-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 a ministerial 
error with regard to certain calculations in the Korea CVD Final 
Determination with respect to POSCO. This amended final CVD 
determination corrects these errors and revises the ad valorem subsidy 
rate for POSCO to 58.68 percent (from 57.04 percent).\5\ There is no 
change to the ``all others'' rate because POSCO's rate was determined 
entirely under section 776 of the Act, and therefore, excluded from the 
``all others'' rate calculation.
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    \5\ See Korea Ministerial Error Decision Memorandum. See also 
Department Memorandum regarding ``Countervailing Duty Investigation 
of Certain Hot-Rolled Steel Flat Products from the Republic of 
Korea: Amended Final Determination Calculation Memorandum for 
POSCO,'' dated August 23, 2016.
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Countervailing Duty Orders

    In accordance with sections 705(b)(1)(A)(i), and 705(d) of the Act, 
the ITC has notified the Department of its final determinations that 
the industry in the United States producing hot-rolled steel is 
materially injured by reason of subsidized imports of hot-rolled steel 
from Brazil and Korea, and that critical circumstances do not exist 
with respect to imports of subject merchandise from Brazil.\6\ 
Therefore, in

[[Page 67961]]

accordance with section 705(c)(2) of the Act, we are publishing these 
CVD orders.
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    \6\ 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 hot-rolled 
steel from Brazil entered, or withdrawn from warehouse, for consumption 
on or after January 15, 2016, the date on which the Department 
published its preliminary affirmative countervailing duty 
determinations in the Federal Register,\7\ and before May 14, 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 hot-rolled steel from 
Brazil made on or after May 14, 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 May 14, 2016, of the suspension 
of liquidation.
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    \7\ 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, 81 FR 2168 (January 15, 2016) 
(Brazil 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 suspend 
liquidation with regard to entries of hot-rolled steel from Korea.\8\ 
The Department's final determination was affirmative, and therefore, we 
directed CBP to suspend liquidation.\9\ Therefore, with regard to 
Korea, we will direct CBP to assess, upon further instruction by the 
Department, countervailing duties on unliquidated entries of hot-rolled 
steel entered, or withdrawn from warehouse, for consumption on or after 
August 12, 2016, the date on which the Department published the Korea 
CVD Final Determination in the Federal Register.
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    \8\ See Countervailing Duty Investigation of Certain Hot-Rolled 
Steel Flat Products from the Republic of Korea: Preliminary Negative 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination, 81 FR 2172 (January 15, 2016) (Korea 
CVD Preliminary Determination).
    \9\ See Korea CVD Final Determination, 81 FR at 53440.
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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 hot-rolled steel from 
Brazil 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 hot-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.

Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of hot-rolled steel from Brazil, we will 
instruct CBP to lift suspension and to refund any cash deposits made to 
secure the payment of estimated countervailing duties with respect to 
entries of the subject merchandise entered, or withdrawn from warehouse 
for consumption on or after October 17, 2015 (i.e., 90 days prior to 
the date of the publication of the CVD Preliminary Determination), but 
before January 15, 2016 (i.e., the date of publication of the CVD 
Preliminary Determination).
    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
                Exporter/proucer from Brazil                     rate
                                                               (percent)
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Companhia Siderurgica Nacional (CSN)........................       11.30
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas).........       11.09
All Others..................................................       11.20
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------------------------------------------------------------------------
                                                                Subsidy
                 Exporter/proucer from Korea                     rate
                                                               (percent)
------------------------------------------------------------------------
POSCO.......................................................       58.68
Hyundai Steel Co., Ltd......................................        3.89
All Others..................................................        3.89
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Notifications to Interested Parties

    This notice constitutes the CVD orders with respect to hot-rolled 
steel from Brazil and Korea, pursuant to section 706(a) of the Act. 
Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    These orders are issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: September 27, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

    The products covered by this order are certain hot-rolled, flat-
rolled steel products, with or without patterns in relief, and 
whether or not annealed, painted, varnished, or coated with plastics 
or other non-metallic substances. The products covered do not 
include those that are clad, plated, or coated with metal. The 
products covered include coils that have a width or other lateral 
measurement (``width'') of 12.7 mm or greater, regardless of 
thickness, and regardless of form of coil (e.g., in successively 
superimposed layers, spirally oscillating, etc.). The products 
covered also include products not in coils (e.g., in straight 
lengths) of a thickness of less than 4.75 mm and a width that is 
12.7 mm or greater and that measures at least 10 times the 
thickness. The products described above may be rectangular, square, 
circular, or other shape and include products of either rectangular 
or non-rectangular cross-section where such cross-section is achieve 
subsequent to the rolling process, i.e., products which have been 
``worked after rolling'' (e.g., products which have been beveled or 
rounded at the edges). For purposes of the width and thickness 
requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above unless the resulting measurement makes the product 
covered by the existing antidumping \10\ or countervailing duty \11\ 
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products 
From the Republic of Korea (A-580-836; C-580-837), and
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    \10\ See Notice of Amendment of Final Determinations of Sales at 
Less Than Fair Value and Antidumping Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate Products From France, India, 
Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6585 
(February 10, 2000).
    \11\ See 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.

[[Page 67962]]

    Steel products included in the scope of this order 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 orders 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 these orders 
unless specifically excluded. The following products are outside of 
and/or specifically excluded from the scope of this order:
     Universal mill plates (i.e., hot-rolled, flat-rolled 
products not in coils that have been rolled on four faces or in a 
closed box pass, of a width exceeding 150 mm but not exceeding 1250 
mm, of a thickness not less than 4.0 mm, and without patterns in 
relief);
     Products that have been cold-rolled (cold-reduced) 
after hot-rolling; \12\
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    \12\ For purposes of this scope exclusion, rolling operations 
such as a skin pass, levelling, temper rolling or other minor 
rolling operations after the hot-rolling process for purposes of 
surface finish, flatness, shape control, or gauge control do not 
constitute cold-rolling sufficient to meet this exclusion.
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     Ball bearing steels; \13\
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    \13\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) Not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.
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     Tool steels; \14\ and
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    \14\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) More than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
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     Silico-manganese steels; \15\
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    \15\ Silico-manganese steel is defined as steels containing by 
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
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    The products subject to this order 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 order 
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 order is dispositive.

[FR Doc. 2016-23835 Filed 9-30-16; 8:45 am]
 BILLING CODE 3510-DS-P