[Federal Register Volume 82, Number 41 (Friday, March 3, 2017)]
[Notices]
[Pages 12433-12435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04130]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-885]


Phosphor Copper From the Republic of Korea: Final Affirmative 
Determination of Sales at Less Than Fair Value and Negative Final 
Determination of Critical Circumstances

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

SUMMARY: The Department of Commerce (the Department) determines that 
phosphor copper from the Republic of Korea (Korea) is being, or is 
likely to be, sold in the United States at less than fair value (LTFV). 
Bongsan Co., Ltd. (Bongsan) is the sole mandatory respondent in this 
investigation. The period of investigation (POI) is January 1, 2015, 
through December 31, 2015. The final estimated dumping margins of sales 
at LTFV are shown below in the ``Final Determination'' section of this 
notice.

DATES: Effective March 3, 2017.

FOR FURTHER INFORMATION CONTACT: Cindy Robinson or Samuel Brummitt, AD/
CVD Operations, Office III, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-3797 or (202) 
482-7851, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On October 14, 2016, the Department published its preliminary 
affirmative determination of sales at LTFV in the investigation of 
phosphor copper from Korea.\1\ The following events occurred since the 
Preliminary Determination was issued.
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    \1\ See Phosphor Copper from the Republic of Korea: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value, Negative 
Preliminary Determination of Critical Circumstances, 81 FR 71049 
(October 14, 2016) (Preliminary Determination).
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    On October 27, 2016, we postponed the final determination to 
February 27, 2017.\2\ Between November 9, 2016, and November 18, 2016, 
the Department verified the sales and cost data reported by Bongsan, 
the sole mandatory respondent in this investigation. We issued our 
verification reports of Bongsan's sales and cost responses on December 
9, 2016, and December 19, 2016, respectively.\3\
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    \2\ See Phosphor Copper from the Republic of Korea: Postponement 
of Final Determination of Sales at Less Than Fair Value, 81 FR 74763 
(October 27, 2016). Postponing the final determination to 135 days 
after the publication of the Preliminary Determination would place 
the deadline on Sunday, February 26, 2017. The Department's practice 
dictates that where a deadline falls on a weekend or federal 
holiday, the appropriate deadline is the next business day. See 
Notice of Clarification: Application of ``Next Business Day'' Rule 
for Administrative Determination Deadlines Pursuant to the Tariff 
Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
    \3\ See Memorandum to the File from Cindy Robinson, Samuel 
Brummitt, and Amanda Mallott, Analysts, ``Verification of the Sales 
Responses of Bongsan Co., Ltd.,'' dated December 8, 2016 (Sales 
Verification Report); see also Memorandum to the File from Gina K. 
Lee, Senior Accountant, ``Verification of the Cost Response of 
Bongsan in the Antidumping Duty Investigation of Phosphor Copper 
from the Republic of Korea,'' dated December 19, 2016 (Cost 
Verification Report).
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    Metallurgical Products Company (Petitioner) submitted its case 
brief on December 28, 2016.\4\ Bongsan submitted its rebuttal brief on 
January 3, 2017.\5\ Petitioner requested that the Department conduct a 
hearing in this investigation, which the Department conducted on 
January 25, 2017.\6\
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    \4\ See Petitioner's letter dated December 27, 2016.
    \5\ See Bongsan's letter dated January 3, 2017.
    \6\ See Petitioner's letter, ``Phosphor Copper from Korea: 
Request for Hearing,'' dated November 14, 2016; see also Hearing 
Transcript, filed on the record February 6, 2017.
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    A full discussion of the issues raised by parties for this final 
determination may be found in the Issues and Decision Memorandum, which 
is hereby adopted by this notice.\7\
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    \7\ See Memorandum from James Maeder, Senior Director, Office I, 
for Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Determination in the Antidumping Duty Investigation of Phosphor 
Copper from the Republic of Korea,'' dated concurrently with this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is phosphor copper from

[[Page 12434]]

Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs in this 
investigation are addressed in the Issues and Decision Memorandum. A 
list of the issues raised is attached to this notice at Appendix II. 
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 https://access.trade.gov and 
is available to all parties in the Central Records Unit, Room B-8024 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/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Final Negative Determination of Critical Circumstances

    On October 14, 2016, the Department found that critical 
circumstances do not exist for merchandise exported by Bongsan.\8\ 
Based on the final dumping margin for Bongsan and further analysis 
following the Preliminary Determination, we are not modifying our 
findings for the final determination. For a complete discussion of this 
issue, see the ``Final Negative Determination of Critical 
Circumstances'' section of the Issues and Decision Memorandum.
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    \8\ See Preliminary Determination.
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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), from November 9, 2016, to November 13, 2016, we conducted 
verification of the sales responses by Bongsan. From November 14, 2016, 
to November 18, 2016, we conducted verification of the cost responses 
by Bongsan. We issued our verification reports of Bongsan's sales and 
cost responses on December 9, 2016, and December 19, 2016, 
respectively.\9\ The Department used standard verification procedures, 
including an examination of relevant accounting and production records 
and original source documents provided by Bongsan.\10\
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    \9\ See Sales Verification Report; see also Cost Verification 
Report.
    \10\ Id.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made the following changes to Bongsan's final margin 
calculation: (1) We recalculated the company's general and 
administrative expense (G&A) ratio; (2) we recalculated the company's 
interest expense (INTEX) ratio; (3) we corrected a customer code for a 
U.S. customer in the calculation of billing adjustments; (4) we removed 
the duty drawback adjustment from Bongsan's margin calculation; and (5) 
we recalculated indirect selling expense ratios for home market and 
U.S. market sales. As a result of these changes, the weighted-average 
dumping margin for Bongsan and all others has changed. For a discussion 
of these changes, see the Issues and Decision Memorandum.

All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``all 
others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. Bongsan is the only respondent for which the Department has 
calculated a company-specific rate. Therefore, for purposes of 
determining the ``all others'' rate and pursuant to section 
735(c)(5)(A) of the Act, we are using the dumping margin calculated for 
Bongsan, as referenced in the ``Final Determination'' section below.

Final Determination

    The Department determines that the final estimated weighted-average 
dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Bongsan Co., Ltd............................................        8.43
All Others..................................................        8.43
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Disclosure

    We will disclose the calculations performed within five days of the 
public announcement of this final determination, in accordance with 19 
CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue the 
suspension of liquidation of all appropriate entries of phosphor copper 
from Korea, as described in Appendix I of this notice, which were 
entered, or withdrawn from warehouse, for consumption on or after 
October 14, 2016, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register. Further, 
the Department will instruct CBP to require a cash deposit equal to the 
estimated amount by which the normal value exceeds the U.S. price as 
shown above.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of phosphor 
copper from Korea no later than 45 days after our final determination. 
If the ITC determines that material injury or threat of material injury 
does not exist, the proceeding will be terminated and all securities 
posted will be refunded or canceled. If the ITC determines that such 
injury does exist, the Department will issue an antidumping duty order 
directing CBP to assess, upon further instruction by the Department, 
antidumping duties on appropriate 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 (APO)

    This notice serves as a reminder to the parties subject to APO of 
their responsibility concerning the disposition of proprietary 
information disclosed under APOs in accordance with 19 CFR 
351.305(a)(3). Timely 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 the terms of APOs 
is a sanctionable violation.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.


[[Page 12435]]


    Dated: February 27, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is master alloys 
\11\ of copper containing between five percent and 17 percent 
phosphorus by nominal weight, regardless of form (including but not 
limited to shot, pellet, waffle, ingot, or nugget), and regardless 
of size or weight. Subject merchandise consists predominantly of 
copper (by weight), and may contain other elements, including but 
not limited to iron (Fe), lead (Pb), or tin (Sn), in small amounts 
(up to one percent by nominal weight). Phosphor copper is frequently 
produced to JIS H2501 and ASTM B-644, Alloy 3A standards or higher; 
however, merchandise covered by this investigation includes all 
phosphor copper, regardless of whether the merchandise meets, fails 
to meet, or exceeds these standards.
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    \11\ A ``master alloy'' is a base metal, such as copper, to 
which a relatively high percentage of one or two other elements is 
added.
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    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheading 7405.00.1000. This HTSUS subheading is 
provided for convenience and customs purposes; the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination
V. Scope of the Investigation
VI. Final Negative Determination of Critical Circumstances
VII. List of Comments
VIII. Discussion of Comments
    1. Whether the Department Should Adjust Bongsan's General and 
Administrative Expense Ratio to Exclude Items Related to Prior 
Periods
    2. Whether the Department Should Recalculate Bongsan's Financial 
Expense Ratio to Account for Gains and Losses on Certain Derivative 
Transactions
    3. Date of Sale for Certain U.S. Customer
    4. Duty Drawback
    5. Ministerial Error Regarding U.S. Billing Adjustments
    6. Revision to Indirect Selling Expense Ratios
IX. Recommendation

[FR Doc. 2017-04130 Filed 3-2-17; 8:45 am]
 BILLING CODE 3510-DS-P