[Federal Register Volume 81, Number 207 (Wednesday, October 26, 2016)]
[Notices]
[Pages 74401-74402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25906]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-469-805]


Stainless Steel Bar From Spain: Initiation and Preliminary 
Results of Changed Circumstances Review

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

SUMMARY: The Department of Commerce (the Department) is initiating a 
changed circumstances review of the antidumping duty order on stainless 
steel bar (SSB) from Spain with respect to Sidenor Aceros Especiales 
S.L. Based on the information on the record, we preliminarily determine 
that Sidenor Aceros Especiales S.L. is the successor-in-interest to 
Gerdau Aceros Especiales Europa for purposes of determining antidumping 
duty liability. We invite interested parties to comment on these 
preliminary results.

DATES: Effective October 26, 2016.

FOR FURTHER INFORMATION CONTACT: Michael A. Romani, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-0198.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the antidumping duty order on SSB from 
Spain on March 2, 1995.\1\ In its September 6, 2016, request for a 
changed circumstances review, Sidenor Aceros Especiales S.L. (Sidenor), 
informed the Department that, effective May 20, 2016, the following 
occurred: (1) Gerdau S.A., the Brazilian owner of Gerdau Holdings 
Europa S.A.U., including its Spanish subsidiary company Gerdau Aceros 
Especiales Europa, S.L. (Gerdau), sold its European holdings to Clerbil 
S.L.; and (2) Clerbil S.L. renamed Gerdau Holdings Europa S.A.U. to be 
Sidenor Holdings Europa S.A.U., and Gerdau Aceros Especiales Europa, 
S.L., to be Sidenor Aceros Especiales S.L. leaving its operations 
mostly unchanged.\2\ Gerdau is a respondent in the ongoing 
administrative review of the antidumping duty order on SSB from Spain 
covering the period March 1, 2015, through February 29, 2016.\3\ 
Because this changed circumstances review was requested for an 
effective date after the POR of the ongoing administrative review, it 
does not have any bearing on that review.\4\ Citing section 751(b) of 
the Act, and 19 CFR 351.216 Sidenor, requested that the Department 
initiate a changed circumstances review and determine that Sidenor 
Aceros Especiales S.L., is the successor-in-interest to Gerdau. Sidenor 
also requested that the Department issue the initiation and preliminary 
results as a single notice, pursuant to 19 CFR 351.221(c)(ii).
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    \1\ See Amended Final Determination and Antidumping Duty Order: 
Stainless Steel Bar From Spain, 60 FR 11656 (March 2, 1995).
    \2\ See Sidenor's Letter to the Secretary of Commerce, entitled, 
``Stainless Steel Bar from Spain: Sidenor request for changed-
circumstances review,'' dated September 22, 2016, (Sidenor Request) 
at 3-6.
    \3\ See Initiation of Antidumping Duty and Countervailing Duty 
Administrative Reviews, 81 FR 26203 (May 2, 2016).
    \4\ Id.
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Scope of the Order

    The merchandise subject to the order is SSB. The term SSB with 
respect to the order means articles of stainless steel in straight 
lengths that have been either hot-rolled, forged, turned, cold-drawn, 
cold-rolled or otherwise cold-finished, or ground, having a uniform 
solid cross section along their whole length in the shape of circles, 
segments of circles, ovals, rectangles (including squares), triangles, 
hexagons, octagons or other convex polygons. SSB includes cold-finished 
SSBs that are turned or ground in straight lengths, whether produced 
from hot-rolled bar or from straightened and cut rod or wire, and 
reinforcing bars that have indentations, ribs, grooves, or other 
deformations produced during the rolling process. Except as specified 
above, the term does not include stainless steel semi-finished 
products, cut-length flat-rolled products (i.e., cut-length rolled 
products which if less than 4.75 mm in thickness have a width measuring 
at least 10 times the thickness, or if 4.75 mm or more in thickness 
having a width which exceeds 150 mm and measures at least twice the 
thickness), wire (i.e., cold-formed products in coils, of any uniform 
solid cross section along their whole length, which do not conform to 
the definition of flat-rolled products), and angles, shapes and 
sections.
    The SSB subject to the order is currently classifiable under 
subheadings 7222.10.00, 7222.11.00, 7222.19.00, 7222.20.00, 7222.30.00 
of the Harmonized Tariff Schedule of the United States (HTSUS).
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope of the order is 
dispositive.\5\
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    \5\ The HTSUS numbers provided in the scope changed since the 
publication of the order. See Amended Final Determination and 
Antidumping Duty Order: Stainless Steel Bar From Spain, 60 FR 11656 
(March 2, 1995).
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Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act) and 19 CFR 351.216(d), the Department will conduct a changed 
circumstances review upon receipt of a request from an interested party 
or receipt of information concerning an antidumping duty order which 
shows changed circumstances sufficient to warrant a review of the 
order. Based on the request from Sidenor, and in accordance with 
section 751(b)(1) of Act and 19 CFR 351.216(b), we are initiating a 
changed circumstances review to determine whether Sidenor is the 
successor-in-interest to Gerdau. The Department's regulations at 
section 351.221(c)(3)(ii) instruct that, if we conclude that an 
expedited action is warranted, we may combine the notices of initiation 
and preliminary results of a changed circumstances review. In this 
instance, because we have the information necessary on the record to 
make a preliminary finding, we find that an expedited action is 
warranted and are combining the notices of initiation and preliminary 
results.

Preliminary Results of Expedited Changed Circumstances Review

    In making a successor-in-interest determination, the Department 
examines several factors including, but not limited to, changes in 
management, production facilities, supplier relationships, and customer 
base.\6\ While no single factor or combination of these factors will 
necessarily provide a

[[Page 74402]]

dispositive indication of a successor-in-interest relationship, the 
Department will generally consider the new company to be the successor 
to the previous company if the new company's operations are not 
materially dissimilar to those of its predecessor.\7\ Thus, if the 
evidence demonstrates that, with respect to the production and sales of 
the subject merchandise, the new company operates as the same business 
entity as the former company, the Department will accord the new 
company the same antidumping treatment as its predecessor.\8\
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    \6\ See, e.g., Pressure Sensitive Plastic Tape from Italy: 
Preliminary Results of Antidumping Duty Changed Circumstances 
Review, 75 FR 8925 (February 26, 2010), unchanged in Pressure 
Sensitive Plastic Tape From Italy: Final Results of Antidumping Duty 
Changed Circumstances Review, 75 FR 27706 (May 18, 2010); and Brake 
Rotors From the People's Republic of China: Final Results of Changed 
Circumstances Antidumping Duty Administrative Review, 70 FR 69941 
(November 18, 2005) (Brake Rotors), citing Brass Sheet and Strip 
from Canada; Final Results of Antidumping Duty Administrative 
Review, 57 FR 20460 (May 13, 1992).
    \7\ See, e.g., Brake Rotors.
    \8\ Id. See also e.g., Notice of Initiation and Preliminary 
Results of Antidumping Duty Changed Circumstances Review: Certain 
Frozen Warmwater Shrimp From India, 77 FR 64953 (October 24, 2012), 
unchanged in Final Results of Antidumping Duty Changed Circumstances 
Review: Certain Frozen Warmwater Shrimp From India, 77 FR 73619 
(December 11, 2012).
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    In its review request,\9\ and its response to our supplemental 
questionnaire,\10\ Sidenor has provided evidence for us to determine 
preliminarily that it is the successor-in-interest to Gerdau. Sidenor 
states that its management, production facilities, and customer/
supplier relationships have not changed as a result of the changes in 
ownership or name of the company.\11\ Sidenor provided corporate 
structure documentation showing changes to the ownership and name of 
the company.\12\ Furthermore, Sidenor provided internal documents 
evidencing that its domestic and overseas customers and suppliers 
remained the same after the changes, as they were prior to them.\13\ 
Sidenor provided internal documentation evidencing that its production 
facilities are the same before and after the changes in ownership and 
the name change.\14\ Sidenor also provided a list of members of the 
management team and supporting documentation indicating that Gerdau's 
managers hold the same positions in Sidenor that they did in Gerdau, 
with the exception of the replacement of the Human Resources 
Director.\15\
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    \9\ See Sidenor Request.
    \10\ See Sidenor's Letter to the Secretary of Commerce, 
entitled, ``Stainless Steel Bar from Spain, CCR (Sidenor): Sidenor 
response to supplemental questions,'' dated October 7, 2016 (SQR).
    \11\ Id.
    \12\ See Sidenor Request at Exhibit 1 (the two structures are 
identical except for the parent), Exhibit 2 (public deed registered 
in the Central Mercantile Registry reflecting name change), Exhibit 
3 (registration of the name change), Exhibits 4-5 (taxpayer 
identification certificates before and after), and Exhibit 6 (SEC 
form 6-K filing at note 3 and 4).
    \13\ See SQR at 3-5, and Exhibit 2 (customers), and at 2-3, and 
Exhibit 1 (supplier).
    \14\ See Sidenor Request at 4, and Exhibit 9 (list of production 
assets).
    \15\ Id., at 4 and Exhibit 7 (organization charts before, 
unchanged with one exception after). The administration of the 
company changed from a Board of Directors to a Sole Administrator. 
See Sidenor Request at Exhibit 2.
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    Based on record evidence, we preliminarily determine that Sidenor 
is the successor-in-interest to Gerdau for purposes of antidumping duty 
liability because the ownership and name changes of the company 
resulted in no significant changes to management, production 
facilities, supplier relationships, and customers. As a result, we 
preliminarily determine that Sidenor operates as the same business 
entity as Gerdau. Thus, we preliminarily determine that Sidenor should 
receive the same antidumping duty cash deposit rate with respect to the 
subject merchandise as Gerdau, its predecessor company.
    Because cash deposits are only estimates of the amount of 
antidumping duties that will be due, changes in cash deposit rates are 
not made retroactive and, therefore, no change will be made to 
Sidenor's cash deposit rate as a result of these preliminary results. 
If Sidenor believes that the deposits paid exceed the actual amount of 
dumping, it is entitled to request an administrative review during the 
anniversary month of the publication of the order of those entries, 
i.e., March, to determine the proper assessment rate and receive a 
refund of any excess deposits.\16\ As a result, if these preliminary 
results are adopted in our final results of this changed circumstances 
review, we will instruct CBP to suspend shipments of subject 
merchandise made by Sidenor, at Gerdau's cash deposit rate, effective 
on the publication date of our final results.
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    \16\ See Certain Hot-Rolled Lead and Bismuth Carbon Steel 
Products From the United Kingdom: Final Results of Changed-
Circumstances Antidumping and Countervailing Duty Administrative 
Reviews, 64 FR 66880 (November 30, 1999).
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Public Comment

    Interested parties may submit case briefs no later than 14 days 
after the publication of this notice.\17\ Rebuttal briefs, which must 
be limited to issues raised in case briefs, may be filed not later than 
five days after the deadline for filing case briefs.\18\ Parties who 
submit case briefs or rebuttal briefs in this changed circumstance 
review are requested to submit with each argument: (1) A statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities. Interested parties who wish to comment on the preliminary 
results must file briefs electronically using Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS) and is available to registered users at http://access.trade.gov. An electronically-filed document must be received 
successfully in its entirety by the ACCESS no later than 5:00 p.m. 
Eastern Time on the date the document is due. Interested parties that 
wish to request a hearing must submit a written request to the 
Assistant Secretary for Enforcement and Compliance, filed 
electronically via ACCESS, within 14 days of publication of this 
notice.\19\ Parties will be notified of the time and date of any 
hearing, if requested.\20\
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    \17\ See 19 CFR 351.309(c)(ii).
    \18\ See 19 CFR 351.309(d).
    \19\ See 19 CFR 351.310(c). See also 19 CFR 351.303 for general 
filing requirements.
    \20\ See 19 CFR 351.310.
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Notifications to Interested Parties

    Consistent with 19 CFR 351.216(e), we intend to issue the final 
results of this changed circumstances review no later than 270 days 
after the date on which this review was initiated, or within 45 days 
after the publication of the preliminary results if all parties in this 
review agree to our preliminary results. The final results will include 
the Department's analysis of issues raised in any written comments.
    This notice of initiation and preliminary results is in accordance 
with section 751(b)(1) of the Act, 19 CFR 351.216(b) and (d), and 19 
CFR 351.221(b)(1).

    Dated: October 18, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-25906 Filed 10-25-16; 8:45 am]
BILLING CODE 3510-DS-P