[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9716-9719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02576]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-042]


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

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

DATES: Effective February 8, 2017.

SUMMARY: The Department of Commerce (the Department) determines that 
imports of stainless steel sheet and strip (stainless sheet and strip) 
from the People's Republic of China (PRC) is being, or is likely to be, 
sold in the United States at less than fair value

[[Page 9717]]

(LTFV). The period of investigation (POI) is July 1, 2015, through 
December 31, 2015. The final weighted-average dumping margins for the 
investigation on stainless sheet and strip from the PRC are listed 
below in the ``Final Determination'' section of this notice. We 
continue to find that critical circumstances exist for the PRC-wide 
entity and the separate rate companies that were not selected for 
individual examination.

FOR FURTHER INFORMATION CONTACT: Alexander Cipolla, or Kathryn Wallace, 
AD/CVD Operations, Office VII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4956 or (202) 482-6251 respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 19, 2016, the Department published its affirmative 
preliminary determination that stainless sheet and strip from the PRC 
is being, or is likely to be, sold in the United States at less than 
fair value, as provided by section 733 of the Tariff Act of 1930, as 
amended (the Act).\1\ The following events occurred since the 
Preliminary Determination. On October 21, 2016, the Department issued a 
postponement of the Final Determination.\2\ We invited interested party 
comments on the Preliminary Determination in this investigation. On 
November 2, 2016, mandatory respondent, Shanxi Taigang Stainless Steel 
Co., Ltd (Taigang) submitted a case brief. On November 14, 2016, 
Petitioners filed a rebuttal case brief.\3\ On January 17, 2017, the 
Department held hearing with respect to this investigation. For a 
complete discussion of the issues raised in the case and rebuttal 
briefs, see the Issues and Decision Memorandum.\4\
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    \1\ See 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, 81 FR 64135 (September 19, 2016) 
(Preliminary Determination) and the accompanying Preliminary 
Determination Memorandum.
    \2\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Postponement of Final Determination of Sales at 
Less Than Fair Value Investigation, 81 FR 72776 (October 21, 2016).
    \3\ Petitioners are AK Steel Corporation, Allegheny Ludlum, LLC 
d/b/a ATI Flat Rolled Products, North American Stainless, and 
Outokumpu Stainless USA, LLC.
    \4\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, regarding ``Decision Memorandum for the 
Final Determination in the Antidumping Duty Investigation of 
Stainless Steel Sheet and Strip from the People's Republic of 
China,'' (February 1, 2017) (Issues and Decision Memorandum), which 
is hereby adopted by this notice.
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Period of Investigation

    The POI is July 1, 2015, through December 31, 2015. This period 
corresponds to the two most recent fiscal quarters prior to the month 
of the filing of the petition.\5\
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    \5\ See 19 CFR 351.204(b)(1).
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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 I.

Final Affirmative Determination of Critical Circumstances

    We continue to find that critical circumstances exist for the PRC-
wide entity and non-selected respondents eligible for a separate rate, 
in accordance with section 735(a)(3) of the Act and 19 CFR 351.206. For 
a full description of the methodology and results of our analysis, see 
the Preliminary Determination, unchanged in the Issues and Decision 
Memorandum.

Separate Rates

    In the Preliminary Determination, we found that evidence provided 
by Taiyuan Ridetaixing Precision Stainless Steel Incorporated Co., Ltd. 
(Ridetaixing), and Zhangjiagang Pohang Stainless Steel Co., Ltd. (ZPSS) 
supported finding an absence of both de jure and de facto government 
control, and, therefore, we preliminarily granted a separate rate to 
each of these companies.\6\ In addition, in the Preliminary 
Determination, we found Tiancheng Stainless Steel Products Co., Ltd. 
(Tiancheng), Taigang and Tianjin Taigang Daming Metal Product Co., Ltd. 
(Daming) to be ineligible for a separate rate.\7\ For the final 
determination, we continue to find that Ridetaixing and ZPSS are 
eligible for separate rates.
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    \6\ See Preliminary Decision Memorandum at 10-13.
    \7\ Id. at 12.
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    With respect to Taigang, we determined in the Preliminary 
Determination that it failed to demonstrate an absence of de facto 
government contro, and, thus, the Department did not grant Taigang a 
separate rate. For this final determination, we continue to find, based 
on record evidence, that Taigang failed to demonstrate an absence of de 
facto government control, and we are, therefore, not granting Taigang a 
separate rate. For further discussion of this issue, see the Issues and 
Decision Memorandum at Issue 5.
    We have looked to sections 735(c)(5)(A)-(B) of the Act for guidance 
in determining the rate applicable to separate rate respondents not 
selected for individual examination. Under section 735(c)(5)(A) of the 
Act, the rate for all other companies that have not been individually 
examined is normally an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero and de 
minimis margins, and any margins determined entirely on the basis of 
facts available. In this investigation, both exporters selected for 
individual examination have been found to be part of the PRC-wide 
entity, which is receiving an antidumping duty rate based entirely on 
facts otherwise available with an adverse inference. Therefore, looking 
to section 735(c)(5)(B) of the Act, the Department is using ``any 
reasonable method'' to determine the rate for exporters that are not 
being individually examined and found to be entitled to a separate 
rate, as we did in the Preliminary Determination. As such, we continue 
to assign the simple average of the two petition rates (i.e., 63.86 
percent) to the separate rate applicants not individually examined.\8\
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    \8\ See Preliminary Determination.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Issues and Decision Memorandum 
accompanying this notice, which is hereby adopted by this notice. A 
list of the issues which the parties raised and to which the Department 
responded in the memorandum appears in Appendix II of this notice. The 
Issues and Decision Memorandum 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://enforcement.trade.gov/frn/. The signed and electronic 
versions of the memorandum are identical in content.

[[Page 9718]]

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to the separate rate and PRC-wide 
entity cash deposit rates since the Preliminary Determination. For a 
discussion of these changes, see the Issues and Decision Memorandum, 
dated concurrently with this notice.\9\
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    \9\ See Issues and Decision Memorandum, dated concurrently with 
this memorandum.
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PRC-Wide Rate

    In our Preliminary Determination, we found that the PRC-wide 
entity, which includes Taigang, Daming, and other PRC exporters and/or 
producers that did not respond to the Department's requests for 
information, failed to provide necessary information, withheld 
information requested by the Department, failed to provide information 
in a timely manner, and significantly impeded this proceeding by not 
submitting the requested information. As a result, we preliminarily 
determined to calculate the PRC-wide rate on the basis of adverse facts 
available (AFA), pursuant to sections 776(a)-(b) of the Act. As AFA, we 
determined to use the highest petition margin (76.64 percent) and 
corroborated that margin. For this final determination, we continue to 
rely on AFA in determining the rate for the PRC-wide entity and to 
select 76.64 percent as the dumping margin for the PRC-wide entity.

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.\10\ Policy Bulletin 05.1 describes 
this practice.\11\
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    \10\ See Stainless Steel Sheet and Strip from the People's 
Republic of China: Initiation of Antidumping Duty Investigation, 81 
FR 12711 (March 10, 2016) (Initiation Notice).
    \11\ See Enforcement and Compliance Policy Bulletin No. 05.1 
``Separate-Rates Practice and Application of Combination Rates in 
Antidumping Investigations involving Non-Market Economy Countries,'' 
(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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Final Determination

    The Department determines that imports of stainless sheet and strip 
from the PRC is being, or is likely to be, sold in the United States at 
LTFV as provided in section 735 of the Act and determines that the 
estimated final weighted-average dumping margins are as follows:

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                                                                                     Weighted-
                                                                                      average      Cash deposit
                   Exporter                                 Producer              dumpin  margin        (%)
                                                                                        (%)
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Taiyuan Ridetaixing Precision Stainless Steel   Taiyuan Ridetaixing Precision              63.86           45.26
 Incorporated Co., Ltd.                          Stainless Steel Incorporated
                                                 Co., Ltd.
Zhangjiagang Pohang Stainless Steel Co., Ltd..  Zhangjiagang Pohang Stainless              63.86           45.26
                                                 Steel Co., Ltd.
PRC-Wide Entity...............................  PRC-Wide Entity.................           76.64           58.04
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Disclosure

    We intend to disclose to parties the calculations performed in this 
proceeding within five days of any public announcement of this notice 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As noted above, for this final determination, the Department found 
that critical circumstances exist with respect to imports of the 
subject merchandise from the PRC-wide entity and the non-selected 
separate rate respondents. Therefore, in accordance with section 
735(c)(4)(A) of the Act, we will instruct U.S. Customs and Border 
Protection (CBP) to continue to suspend liquidation of all imports of 
the merchandise subject to the investigation, that were entered or 
withdrawn from warehouse, for consumption on or after June 21, 2016, 90 
days prior to publication of the Preliminary Determination in the 
Federal Register, and require a cash deposit for such entries as noted 
below.
    Pursuant to 19 CFR 351.205(d) and section 735(c)(1)(B)(ii) of the 
Act, we will instruct CBP to require a cash deposit \12\ for all 
suspended entries at an ad valorem rate equal to the weighted-average 
amount by which normal value exceeds U.S. price, as follows: (1) The 
cash deposit rate for the exporter/producer combination listed in the 
table above will be the dumping margin identified for that combination 
in the table adjusted, where appropriate,\13\ for export subsidies and 
estimated domestic subsidy pass-through; \14\ (2) for all combinations 
of PRC exporters/producers of merchandise under consideration that have 
not received their own separate rate above, the cash-deposit rate will 
be the dumping margin established for the PRC-wide entity, which will 
be adjusted, where appropriate for export subsidies and estimated 
domestic subsidy pass-through; and (3) for all non-PRC exporters of the 
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. These suspension of liquidation and cash deposit 
instructions will remain in effect until further notice.
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    \12\ 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).
    \13\ If the ITC makes an affirmative final determination, we 
will adjust the cash deposit rates by deducting applicable final 
export subsidy and domestic pass-through rates from the final 
dumping margins.
    \14\ See sections 772(c)(1)(C) and 777A(f) of the Act, 
respectively. Unlike in administrative reviews, the Department makes 
an adjustment for export subsidies in investigations not in the 
margin-calculation program, but to the cash-deposit rate. See Notice 
of Final Determination of Sales at Less Than Fair Value, and 
Negative Determination of Critical Circumstances: Certain Lined 
Paper Products from India, 71 FR 45012 (August 8, 2006), and 
accompanying Issues and Decision memorandum at Comment 1.
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    The cash deposit rates were adjusted by the countervailing duty 
attributable to export subsidies. Pursuant to 777A(f) of the Act, we 
are also adjusting final cash deposit rates for estimated domestic 
subsidy pass-through, where appropriate.\15\
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    \15\ Id. at Issue 2.
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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at less than fair value. Because the final 
determination in this proceeding is

[[Page 9719]]

affirmative, the ITC will make its final determination, in accordance 
with section 735(b)(2) of the Act, as to whether the domestic industry 
in the United States is materially injured, threatened with material 
injury, or the establishment of an industry in the United States is 
materially retarded by reason of imports of passenger tires from the 
PRC, no later than 45 days after our final determination. If the ITC 
determines that material injury, threat of material injury, or material 
retardation does not exist, this proceeding will be terminated and all 
cash deposits posted will be refunded or canceled. If the ITC 
determines that such injury or material retardation does exist, then 
the Department will issue an antidumping duty order directing CBP to 
assess, upon further instruction by the Department, antidumping duties 
on all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

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 
administrative protective order (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 and notice are issued and 
published pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: January 1, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--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, 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.

Appendix II--Outline of the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Use of Adverse Facts Available
VI. Critical Circumstances
VII. Separate Rates
VIII. Combination Rates
IX. PRC-Wide Rate
X. Adjustment Under Section 777A(F) of the Act
XI. Adjustment to Cash Deposit Rate for Export Subsidies
XII. Discussion of the Issues
XIII. Recommendation

List of Topics Discussed in the Issues and Decision Memorandum

Issue 1: Whether the Department's Investigation and Decision Not to 
Verify Taigang Were Lawful
Issue 2: Whether the Department Should Apply a Double-Remedy 
Adjustment for Domestic Subsidies Countervailed in the Accompanying 
CVD Investigation
Issue 3: Whether the Department has the Statutory Authority to Issue 
a Country-Wide ``PRC-Entity'' AD Rate, and Whether the Department 
has Justification for Applying FA or AFA to Taigang
Issue 4: Whether the Department's Presumption of PRC Government 
Control is Outdated
Issue 5: Whether Taigang's Export Activities Are Controlled by the 
Chinese Government

[FR Doc. 2017-02576 Filed 2-7-17; 8:45 am]
 BILLING CODE 3510-DS-P