[Federal Register Volume 82, Number 52 (Monday, March 20, 2017)]
[Notices]
[Pages 14346-14349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05441]


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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: Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the Department) and the International Trade Commission (ITC), 
the Department is issuing a countervailing duty order on Certain Carbon 
and Alloy Steel Cut-to-Length

[[Page 14347]]

Plate (CTL plate) from the People's Republic of China (PRC).

DATES: Effective March 20, 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

    In accordance with section 705(d) of the Tariff Act of 1930, as 
amended (the Act), on January 26, 2017, the Department published its 
affirmative final determination in the countervailable investigation of 
CTL plate from the PRC.\1\ On March 13, 2017, the ITC notified the 
Department of its final determination pursuant to section 705(b)(1)(A) 
of the Act, that an industry in the United States is materially injured 
or threatened with material injury by reason of subsidized imports of 
CTL plate from the PRC.\2\
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    \1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
the People's Republic of China: Final Affirmative Countervailing 
Duty Determination, 82 FR 8507 (January 26, 2017).
    \2\ See Letter to Ronald Lorentzen, Acting Assistant Secretary 
of Commerce for Enforcement and Compliance, from Rhonda K. 
Schmidtlein, Chairman of the U.S. International Trade Commission, 
regarding CTL plate from the PRC (March 13, 2017). See also Carbon 
and Alloy Steel Cut-to-Length Plate from China (Investigation Nos. 
701-TA-560 and 731-TA-1320 (Final)), USITC Publication 4675, March 
2017.
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Scope of the Order

    The products covered by this order 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 order 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 order 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 order 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 order:
    (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
(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;

[[Page 14348]]

    (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 order 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 order 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 
order is dispositive.

Countervailing Duty Order

    In accordance with sections 705(b)(1)(A) and 705(d) of the Act, the 
ITC has notified the Department of its final determination in this 
investigation, in which it found that imports of CTL plate from the PRC 
are materially injuring or threatening material injury to a U.S. 
industry.\3\ Therefore, in accordance with section 705(c)(2) of the 
Act, we are publishing this countervailing duty order.
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    \3\ Id.
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    As a result of the ITC's final determinations, in accordance with 
section 706(a) of the Act, the Department will direct U.S. Customs and 
Border Protection (CBP) to assess, upon further instruction by the 
Department, countervailing duties on unliquidated entries of CTL plate 
from the PRC entered, or withdrawn from warehouse, for consumption on 
or after September 13, 2016, the date on which the Department published 
its preliminary countervailing duty determinations in the Federal 
Register,\4\ and before January 11, 2017, the date on which the 
Department instructed CBP to discontinue the suspension of liquidation 
in accordance with section 703(d) of the Act. Section 703(d) of the Act 
states that the suspension of liquidation pursuant to a preliminary 
determination may not remain in effect for more than four months. 
Therefore, entries of CTL plate made on or after January 11, 2017, and 
prior to the date of publication of the ITC's final determination in 
the Federal Register are not liable for the assessment of 
countervailing duties due to the Department's discontinuation, 
effective January 11, 2017, of the suspension of liquidation.
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    \4\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 81 FR 62871 
(September 13, 2016).
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Suspension of Liquidation

    In accordance with section 706 of the Act, the Department will 
instruct CBP to reinstitute the suspension of liquidation of subject 
merchandise from the PRC, effective on the date of publication of the 
ITC's notice of final determinations

[[Page 14349]]

in the Federal Register, and to assess, upon further instruction by the 
Department pursuant to section 706(a)(1) of the Act, countervailing 
duties for each entry of the subject merchandise in an amount based on 
the net countervailable subsidy rates for the subject merchandise. On 
or after the date of publication of the ITC's final injury 
determinations in the Federal Register, CBP must require, at the same 
time as importers would normally deposit estimated duties on this 
merchandise, a cash deposit equal to the rates noted below. The all-
others rate applies to all producers and exporters of subject 
merchandise not specifically listed below.

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
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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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Notification to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to CTL plate from the PRC pursuant to section 706(a) of the Act. 
Interested parties may contact the Department's Central Records Unit, 
Room B8024 of the main Commerce Building, for copies of an updated list 
of countervailing duty orders currently in effect.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: March 14, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2017-05441 Filed 3-17-17; 8:45 am]
 BILLING CODE 3510-DS-P