[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9714-9716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02577]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-043]


Countervailing Duty Investigation of Stainless Steel Sheet and 
Strip From the People's Republic of China: Final Affirmative 
Determination, and Final Affirmative Critical Circumstances 
Determination, in Part

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 stainless steel sheet and strip (stainless sheet and strip) from the 
People's Republic of China (PRC) as provided in section 705 of the 
Tariff Act of 1930, as amended (the Act). For information on the 
estimated subsidy rates, see the ``Final Determination'' section of 
this notice. The period of investigation is January 1, 2015, through 
December 31, 2015.

DATES: Effective February 8, 2017.

FOR FURTHER INFORMATION CONTACT: Spencer Toubia or David Lindgren, 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) 482-0123 or (202) 
482-3870, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on July 18, 
2016.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Final Decision Memorandum.\2\ The Final 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 Final 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Final Decision Memorandum and 
the electronic version are identical in content.
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    \1\ See Countervailing Duty Investigation of Stainless Steel 
Sheet and Strip from the People's Republic of China: Preliminary 
Affirmative Determination and Alignment of Final Determination with 
Final Antidumping Duty Determination, 81 FR 46643 (July 18, 2016) 
(Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Stainless Steel Sheet and Strip from the People's Republic of 
China,'' (Final Decision Memorandum), dated concurrently with this 
determination and hereby adopted by this notice.
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Period of Investigation

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

Scope Comments

    In accordance with the Preliminary Scope Determination, the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.\3\ No 
interested parties submitted scope comments in case or rebuttal briefs; 
therefore, the scope of this investigation remains unchanged for this 
final determination.
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    \3\ See Memorandum, ``Stainless Steel Sheet and Strip from the 
People's Republic of China: Preliminary Scope Memorandum for the 
Antidumping and Countervailing Duty Investigations,'' September 9, 
2016.
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Scope of the Investigation

    The product covered by this investigation is stainless sheet and 
strip from the PRC. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix II 
of this notice.

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 Final Decision Memorandum. A list of the issues that 
parties raised, and to which we responded in the Final

[[Page 9715]]

Decision Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available

    The Department, in making these findings, relied, in part, on facts 
available, and because one or more respondents failed to cooperate by 
not acting to the best of their ability, we made adverse inferences.\4\ 
For the final determination, we are basing the countervailing duty 
(CVD) rates for Ningbo Baoxin Stainless Steel Co., Ltd. (Ningbo Baoxin) 
and Daming International Import Export Co Ltd (Daming) on facts 
otherwise available, pursuant to sections 776(a)(2)(A) and (C) of the 
Tariff Act of 1930, as amended (the Act). Further, because Ningbo 
Baoxin and Daming did not cooperate to the best of their ability in 
this investigation, we also determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. For further 
information, see the Preliminary Determination as well as the section 
``Use of Facts Otherwise Available and Adverse Inferences,'' in the 
Final Decision Memorandum.
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    \4\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections accepted at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Final Decision Memorandum and the Final Analysis Memorandum.\5\
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    \5\ See Final Decision Memorandum; see also Memorandum, ``Final 
Determination Analysis for Shanxi Taigang Stainless Steel Co. 
Ltd.,'' dated concurrently with this determination and hereby 
adopted by this notice.
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Final Affirmative Determination of Critical Circumstances, in Part

    Prior to the Preliminary Determination, the Department found that 
critical circumstances exist with respect to imports of stainless sheet 
and strip from the PRC for Shanxi Taigang Stainless Steel Co. Ltd. 
(Taigang), Ningbo Baoxin, Daming, and ``all other'' companies.\6\ Upon 
further analysis of the data and comments submitted by interested 
parties following the Preliminary Determination, we are modifying our 
findings for the Final Determination.\7\ Specifically, in accordance 
with section 705(a)(2) of the Act, we find that critical circumstances 
exist with respect to imports from Ningbo Baoxin and Daming, but do not 
exist for Taigang and ``all other'' producers or exporters.\8\
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    \6\ See Countervailing Duty Investigation of Stainless Steel 
Sheet and Strip from the People's Republic of China: Preliminary 
Determination of Critical Circumstances, 81 FR 41519 (June 27, 
2016).
    \7\ For a full description of the methodology and results of our 
analysis, see the Final Decision Memorandum.
    \8\ See Final Decision Memorandum.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established rates for Taigang (the only individually investigated 
exporter/producer of the subject merchandise that participated in this 
investigation), and for Ningbo Baoxin and Daming (which were assigned a 
rate based on adverse facts available (AFA)).
    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A)(i) 
of the Act, for companies not individually investigated, we apply an 
``all-others'' rate, which is normally calculated by weight averaging 
the subsidy rates of the individual companies selected for individual 
examination with those companies' export sales of the subject 
merchandise to the United States, excluding any zero and de minimis 
rates calculated for the exporters and producers individually 
investigated, and any rates determined entirely under section 776 of 
the Act. Consistent with section 705(c)(5)(A)(i) of the Act, we, 
therefore, have excluded the AFA rate assigned to Ningbo Baoxin and 
Daming from the determination of the all-others rate.
    Because the only individually calculated rate that is not zero, de 
minimis, or based entirely on facts otherwise available is the rate 
calculated for Taigang, in accordance with section 705(c)(5)(A)(i) of 
the Act, the rate calculated for Taigang is assigned as the ``all-
others'' rate. The estimated countervailable subsidy rates are 
summarized in the table below.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                                (%)
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Shanxi Taigang Stainless Steel Co. Ltd..................           75.60
Ningbo Baoxin Stainless Steel Co., Ltd., Baosteel                 190.71
 Stainless Steel Co Ltd, Baoshan Iron & Steel Co, Ltd.,
 Baosteel Desheng Stainless Steel Co., Ltd, Baosteel
 Co., Ltd., Bayi Iron & Steel Co., Ltd., Ningbo Iron &
 Steel Co., Ltd., Shaoguan Iron & Steel Co., Ltd.,
 Guangdong Shaoguan Iron & Steel Co., Ltd., and
 Zhanjiang Iron & Steel Co., Ltd........................
Daming International Import Export Co Ltd. and Tianjin            190.71
 Taigang Daming Metal Product Co., Ltd..................
All-Others..............................................           75.60
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B), (d)(2), and (e)(2) of the Act, we instructed 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of merchandise under consideration from the PRC that were 
entered or withdrawn from warehouse, for consumption, on or after April 
19, 2016. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, for consumption, on or after November 14, 2016, but to 
continue the suspension of liquidation of all entries from April 19, 
2016, through November 13, 2016.
    If the U.S. International Trade Commission (the 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 material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled. Further, because we find 
critical circumstances do not exist for Taigang and ``all other'' 
producers or exporters, we will terminate the retroactive suspension of 
liquidation ordered at the Preliminary Determination and release any 
cash deposits that were required during that period, consistent with 
section 705(c)(3) of the Act.

[[Page 9716]]

ITC 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 related 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 serves as the only reminder to parties subject to an APO of 
their responsibility concerning the destruction 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.

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

Appendix I--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances, in Part
IV. Scope Comments
V. Scope of the Investigation
VI. Application of the Countervailing Duty Law to Imports from the 
PRC
VII. Subsidies Valuation Information
VIII. Benchmarks and Discount Rates
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. Analysis of Comments
    Comment 1: Subsidies Received by Taigang Xinlei
    Comment 2: Previously Unreported Government Grants Received by 
the Taigang Companies Discovered at Verification
    Comment 3: TISCO's Exemption from Distributing Dividends to the 
State
    Comment 4: Equity Investments in Taigang Wanbang
    Comment 5: The Department's Preliminary Calculations Relating to 
the Provision of Land for LTAR Significantly Understate the 
Countervailable Benefit to TISCO
    Comment 6: The Department's Preliminary Calculations Contain 
Errors in Certain Formulas for Calculating the Benefit from the 
Provision of Electricity for LTAR
    Comment 7: The Department Must Use Taigang's Consolidated Sales 
in Calculating Any Subsidy Rate with Respect to Subsidies Received 
Directly by Taigang
    Comment 8: The Correct Benchmark for Nickel Pig Iron
    Comment 9: Provision of Inputs and Financing from Taigang's 
Cross-Owned Affiliates
    Comment 10: Countervailability of Certain Chromium Purchases
    Comment 11: Use of AFA in Finding Deed Tax Exemption Used by 
Taigang/Untimely Submission
XII. Recommendation

Appendix II--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.

[FR Doc. 2017-02577 Filed 2-7-17; 8:45 am]
 BILLING CODE 3510-DS-P