[Federal Register Volume 82, Number 16 (Thursday, January 26, 2017)]
[Notices]
[Pages 8507-8510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01712]


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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: Final Affirmative Countervailing Duty 
Determination

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

SUMMARY: The Department of Commerce (the ``Department'') determines 
that countervailable subsidies are being provided to producers and 
exporters of certain carbon and alloy steel cut-to-length plate (``CTL 
plate'') from the People's Republic of China (``PRC''). For information 
on the estimated subsidy rates, see the ``Final Determination'' section 
of this notice.

DATES: Effective January 26, 2017.

FOR FURTHER INFORMATION CONTACT: Ryan Mullen, AD/CVD Operations, Office 
V, Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230; telephone (202) 482-5260.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the Preliminary Determination on September 
13, 2016.\1\ A summary of the events that occurred since the 
preliminary analysis, as well as a full discussion of the issues raised 
by parties for this final determination, may be found in the Issues and 
Decision Memo.\2\ The Issues and Decision Memo 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 Issues and Decision Memorandum 
can be accessed directly at http://trade.gov/enforcement. The signed 
Issues and Decision Memo and the electronic versions of the Issues and 
Decision Memo are identical in content.
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    \1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
the People's Republic of China: Preliminary Affirmative 
Determination and Alignment of Final Determination with Final 
Antidumping Duty Determination, 81 FR 62871 (September 13, 2016) 
(``Preliminary Determination'') and accompanying Preliminary 
Decision Memorandum (``Preliminary Decision Memo'').
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Affirmative Determination in the Countervailing Duty Investigation 
of Certain Carbon and Alloy Steel Cut-to-Length Plate from the 
People's Republic of China,'' dated concurrently with this 
determination and hereby adopted by this notice (``Issues and 
Decision Memo'').
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2015, through December 31, 2015.

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 
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 concurrent CTL plate 
investigations as it appeared in the Initiation Notice. For a summary 
of the product coverage comments and rebuttal responses submitted to 
the records of this and the concurrent CTL plate investigations, and a 
discussion and analysis of all comments timely received, see the 
Department's Preliminary Scope Decision Memorandum, the Department's 
Additional Preliminary Scope Decision Memorandum, and the Department's 
Final Scope Comment Decision Memorandum.\5\ The Department has

[[Page 8508]]

modified the scope language as it appeared in the Initiation Notice to 
clarify the exclusion for stainless steel plate, corrected two tariff 
numbers that were misidentified in the Petitions and in the Initiation 
Notice, and modified language pertaining to existing steel plate and 
hot-rolled flat-rolled steel orders.\6\
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    \3\ See Antidumping Duties; Countervailing Duties; Final rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \4\ See 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) at 27090.
    \5\ 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,'' (September 
6, 2016) (``Preliminary Scope Decision Memorandum''), 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: 
Additional Scope Comments Preliminary Decision Memorandum and 
Extension of Deadlines for Scope Case Briefs and Scope Rebuttal 
Briefs'' (October 13, 2016) (``Additional Preliminary Scope Decision 
Memorandum''), and 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: Final Scope Comments 
Decision Memorandum,'' (November 29, 2016) (``Final Scope Comments 
Decision Memorandum''), respectively.
    \6\ See Preliminary Scope Decision Memorandum at 2 and 56, 
Additional Preliminary Scope Decision Memorandum at 10-11 and 20, 
and Final Scope Comments Decision Memorandum at 40.
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Methodology

    The Department is conducting this countervailing duty (``CVD'') 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the ``Act''). For each of the subsidy programs found 
countervailable, we determine that there is a subsidy, i.e., a 
financial contribution by an ``authority'' that gives rise to a benefit 
to the recipient, and that the subsidy is specific.\7\ For a full 
description of the methodology underlying our conclusions, see the 
Issues and Decision Memo.
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    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memo. A list of the issues that 
parties raised, and to which we responded in the Issues and Decision 
Memo, is attached to this notice at Appendix I.

Adverse Facts Available

    Section 776(a) of the Act provides that, subject to section 782(d) 
of the Act, the Department shall apply ``facts otherwise available'' 
if: (1) Necessary information is not on the record; or (2) an 
interested party or any other person (A) withholds information that has 
been requested, (B) fails to provide information within the deadlines 
established, or in the form and manner requested by the Department, 
subject to subsections (c)(1) and (e) of section 782 of the Act, (C) 
significantly impedes a proceeding, or (D) provides information that 
cannot be verified as provided by section 782(i) of the Act. 
Furthermore, section 776(b) of the Act provides that the Department may 
use an adverse inference in applying the facts otherwise available when 
a party fails to cooperate by not acting to the best of its ability to 
comply with a request for information.
    In this final determination, as we did in the preliminary 
determination, we find that the application of AFA is warranted with 
respect to Jiangyin Xingcheng Special Steel Works Co. Ltd. (``Jiangyin 
Special''), Hunan Valin Xiangtan Iron & Steel (``Hunan Valin'') and 
Viewer Development Co., Ltd. (``Viewer Development''). For further 
information, see the section ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the accompanying Issues and Decision Memo.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to the subsidy rates since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memo.

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated. In accordance with section 
705(c)(5)(A)(i) of the Act, for companies not individually 
investigated, we apply an ``all-others'' rate, which is normally 
calculated by weighting the subsidy rates of the individual companies 
selected as mandatory respondents by those companies' exports of the 
subject merchandise to the United States. Section 705(c)(5)(A)(ii) of 
the Act provides that if the countervailable subsidy rate established 
for all exporters and producers individually investigated are 
determined entirely in accordance with section 776 of the Act, the 
Department may use any reasonable method to establish an all-others 
rate for exporters and producers not individually investigated. In this 
case, the countervailable subsidy rate calculated for the investigated 
companies is based entirely on facts available under section 776 of the 
Act. There is no other information on the record upon which to 
determine an all-others rate. As a result, we have used the rate 
assigned for Jiangyin Special, Hunan Valin, and Viewer Development as 
the all-others rate. This method is consistent with the Department's 
past practice.\8\
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    \8\ See, e.g., Circular Welded Carbon-Quality Steel Pipe from 
India: Final Affirmative Countervailing Duty Determination, 77 FR 
64468 (October 22, 2012).

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
------------------------------------------------------------------------
Jiangyin Xingcheng Special Steel Works Co. Ltd..........          251.00
Hunan Valin Xiangtan Iron & Steel.......................          251.00
Viewer Development Co., Ltd.............................          251.00
All Others..............................................          251.00
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
section 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs and 
Border Protection (``CBP'') to suspend liquidation of appropriate 
entries of merchandise under consideration from the PRC that were 
entered or withdrawn from warehouse, for consumption, on or after 
September 13, 2016, the date of publication of the Preliminary 
Determination in the Federal Register. In accordance with section 
703(d) of the Act, on January 11, 2017, we have instructed CBP to 
discontinue the suspension of liquidation of all entries at that time.
    If the U.S. International Trade Commission (``ITC'') issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that

[[Page 8509]]

material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited as a 
result of the suspension of liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
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 (``APO''), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice will serve as the only reminder to parties subject to an 
APO of their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials, or conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: January 17, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Application of the Countervailing Duty Law to Imports from the 
PRC
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Comments
    Comment 1: The Department's Continued Use of AFA for Jiangyin 
Special
    Comment 2: The Department Cannot Countervail All Income Tax 
Programs Combined by More Than 25 Percent
    Comment 3: The Department Should Exclude Terminated Programs 
from the Total AFA Subsidy Rate
    Comment 4: The Department Should Amend the Selected AFA Rates 
for Certain Programs Consistent with its Stated Methodology
VIII. Recommendation

Appendix II

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., 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; 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

[[Page 8510]]

    (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 75ksi min and UTS 95ksi 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.
    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.

[FR Doc. 2017-01712 Filed 1-25-17; 8:45 am]
 BILLING CODE 3510-DS-P