[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Notices]
[Pages 16341-16344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06632]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-888]
Certain Carbon and Alloy Steel Cut-To-Length Plate From the
Republic of Korea: Final Affirmative Countervailing Duty Determination
and Final Negative Critical Circumstances 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/exporters of
certain carbon and alloy steel cut-to-length plate (CTL plate) from the
Republic of Korea (Korea). In addition, we continue to find that
critical circumstances do not exist with respect to POSCO, POSCO-Daewoo
Corporation, and all-other producers/exporters from Korea. The period
of investigation is January 1, 2015, through December 31, 2015. For
information on the estimated subsidy rates, see the ``Final
Determination and Suspension of Liquidation'' section of this notice.
DATES: Effective April 4, 2017.
FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or John Corrigan, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone: (202) 482-3813 and (202) 482-
7438, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the Preliminary Determination on September
14, 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
[[Page 16342]]
found in the Issues and Decision Memorandum, which is hereby adopted by
this notice.\2\
---------------------------------------------------------------------------
\1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from
the Republic of Korea: Preliminary Negative Countervailing Duty
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination, 81 FR 63168 (September 14, 2016)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum (Preliminary Decision Memorandum).
\2\ See Memorandum to Ronald K. Lorentzen, from Gary Taverman,
``Issues and Decision Memorandum for the Final Determination in the
Countervailing Duty Investigation of Certain Carbon and Alloy Steel
Cut-to-Length Plate from the Republic of Korea,'' dated concurrently
with this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The merchandise covered by this investigation is CTL plate from
Korea. For a complete description of the scope of this investigation,
see Appendix I.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs submitted by the parties, are discussed in
the Issues and Decision Memorandum. A list of the issues that parties
raised, and to which we responded in the Issues and Decision
Memorandum, 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 it 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.
Use of Adverse Facts Available
In making this final determination, the Department relied in part
on facts available. Because POSCO Chemtech and POSCO M-Tech, which are
cross-owned affiliates of POSCO, and Hyundai Corporation, a trading
company unaffiliated with POSCO, did not act to the best of their
ability in responding to the Department's requests for information, we
drew an adverse inference where appropriate in selecting from among the
facts otherwise available.\3\ For further information, see the section
``Use of Facts Otherwise Available and Adverse Inferences'' in the
accompanying Issues and Decision Memorandum.
---------------------------------------------------------------------------
\3\ See Sections 776(a) and (b) of the Act; see also 19 CFR
351.525(b)(6)(iv) and 19 CFR 351.525(c).
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our analysis of the comments received from parties and the
minor corrections presented, as well as additional items discovered at
verification, we made certain changes to the respondent's subsidy rate
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum and POSCO's Final Calculation Memorandum.\4\
---------------------------------------------------------------------------
\4\ See Issues and Decision Memorandum; see also Memorandum from
John Corrigan to Brian C. Davis, ``Countervailing Duty Investigation
of Certain Carbon and Alloy Steel Cut-to-Length Plate from the
Republic of Korea: POSCO Final Determination Calculation
Memorandum,'' dated March 29, 2017 (POSCO's Final Calculation
Memorandum).
---------------------------------------------------------------------------
Final Negative Determination of Critical Circumstances
On July 26, 2016, Petitioners \5\ timely filed a critical
circumstances allegation, pursuant to section 703(e)(1) of the Tariff
Act of 1930, as amended (the Act) and 19 CFR 351.206(c)(1), alleging
that critical circumstances exist with respect to imports of CTL plate
from Korea.\6\ The Department preliminarily determined that critical
circumstances did not exist with respect to POSCO, POSCO-Daewoo
Corporation, and all-other producers/exporters from Korea.\7\ Our
analysis and conclusion concerning critical circumstances remain
unchanged for our final determination.\8\
---------------------------------------------------------------------------
\5\ Petitioners are ArcelorMittal USA LLC, Nucor Corporation,
and SSAB Enterprises, LLC.
\6\ See Letter from Petitioners, ``Re: Certain Carbon and Alloy
Steel Cut-To-Length Plate from Austria, Belgium, Brazil, the
Republic of Korea, Taiwan, and Turkey: Critical Circumstances
Allegations,'' dated July 26, 2016.
\7\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from
Austria, Belgium, Brazil, the Republic of Korea, Taiwan, and Turkey;
Antidumping and Countervailing Duty Investigations: Preliminary
Determinations of Critical Circumstances, 81 FR 61666 (September 7,
2016).
\8\ See Issues and Decision Memorandum at Section III, ``Final
Determination of Critical Circumstances.''
---------------------------------------------------------------------------
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated a rate for POSCO, the exporter/producer of subject
merchandise selected for individual examination in this investigation.
In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) 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 respondents with
those companies' export sales of the subject merchandise to the United
States. Section 705(c)(5)(A)(i) of the Act states that the all-others
rate shall be an amount equal to the weighted-average countervailable
subsidy rates established for exporters and producers individually
investigated, excluding any rates that are zero or de minimis or any
rates determined entirely on facts available. However, section
705(c)(5)(A)(ii) of the Act states that if the countervailable subsidy
rates for all exporters and producers individually investigated are
zero or de minimis rates, or are determined entirely under 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, including averaging the weighted-average countervailable
subsidy rates determined for the exporters and producers individually
investigated.
POSCO is the only mandatory respondent in the instant
investigation. We, therefore, are applying the countervailable subsidy
rate calculated for POSCO to all-other producers/exporters not
individually investigated. The Department has taken this approach to
calculating the all-others rate in other countervailing duty (CVD)
investigations.\9\ In accordance with the scope of this investigation,
this application of POSCO's subsidy rate to all-other producers/
exporters applies only to subject CTL plate not within the physical
description of cut-to-length carbon quality steel plate in the 1999
Korea CVD Order.\10\
---------------------------------------------------------------------------
\9\ See, e.g., Grain-Oriented Electrical Steel from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination, 79 FR 59221 (October 1, 2014) and accompanying Issues
and Decision Memorandum at 12.
\10\ See Final Affirmative Countervailing Duty Determination:
Certain Cut-to-Length Carbon-Quality Steel Plate from the Republic
of Korea, 64 FR 6587 (December 29, 1999), as amended, 65 FR 6587
(February 10, 2000) (1999 Korea CVD Order).
---------------------------------------------------------------------------
Final Determination
The final subsidy rates are as follows:
------------------------------------------------------------------------
Subsidy rate
Producer/exporter (percent)
------------------------------------------------------------------------
POSCO................................................... 4.31
All-Others.............................................. 4.31
------------------------------------------------------------------------
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In the Preliminary Determination, the total net countervailable
subsidy rates for the individually examined
[[Page 16343]]
respondents were de minimis and, therefore, we did not suspend
liquidation of entries of CTL plate from Korea. However, as the
estimated subsidy rates for the examined company is above de minimis in
this final determination, we are directing U.S. Customs and Border
Protection (CBP) to suspend liquidation of entries of CTL plate from
Korea that are entered, or withdrawn from warehouse, for consumption on
or after the date of publication of this notice in the Federal
Register, and to require a cash deposit for such entries of merchandise
in the amounts indicated above, pursuant to section 705(c)(1)(B)(ii) of
the Act. The suspension of liquidation will remain in effect until
further notice.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order and
instruct CBP to continue to 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.
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 Acting Assistant Secretary for Enforcement and
Compliance.
Notification Regarding Administrative Protective Orders (APO)
This notice serves as a reminder to parties subject to APO of their
responsibility concerning the disposition of proprietary information
disclosed under APO 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 an APO is a
sanctionable violation.
This determination is issued and published pursuant to sections
705(d) and 777(i)(1) of the Act.
Dated: March 29, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
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 1,250 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 unless the product is already covered by
an order existing on that specific country (i.e., Certain Hot-Rolled
Steel Flat Products from Brazil and the Republic of Korea: Amended
Final Affirmative Countervailing Duty Orders, 81 FR 67960 (October
3, 2016)); 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 investigation;
(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 and 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:
[[Page 16344]]
(i) 270-300 HBW,
(ii) 290-320 HBW, or
(iii) 320-350HBW;
(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 and
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 95 ksi 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 and
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 145 ksi or
more and UTS 160 ksi 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.
At the time of the filing of the petition, there was an existing
countervailing duty order on certain cut-to-length carbon-quality
steel plate from Korea. See Final Affirmative Countervailing Duty
Determination: Certain Cut-to-Length Carbon-Quality Steel Plate From
the Republic of Korea, 64 FR 73176 (Dep't Commerce Dec. 29, 1999),
as amended, 65 FR 6587 (Dep't Commerce Feb. 10, 2000) (1999 Korea
CVD Order). The scope of the countervailing duty investigation with
regard to cut-to-length plate from Korea covers only (1) subject
cut-to-length plate not within the physical description of cut-to-
length carbon quality steel plate in the 1999 Korea CVD Order
regardless of producer or exporter, and (2) cut-to-length plate
produced and/or exported by those companies that were excluded or
revoked from the 1999 Korea CVD Order as of April 8, 2016. The only
revoked or excluded company is Pohang Iron and Steel Company, also
known as POSCO.
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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Final Determination of Critical Circumstances
IV. Scope of the Investigation
V. Scope Comments
VI. Subsidies Valuation Information
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Calculation of the All-Others Rate
IX. Analysis of Programs
X. Analysis of Comments
Comment 1: Whether the Department Should Consider POSCO Energy's
Sales of Electricity under the Government of Korea's Purchases of
Electricity for More Than Adequate Remuneration Program
Comment 2: Whether the Department Should Find That the Provision
of Electricity for Less Than Adequate Remuneration (LTAR) is a
Countervailable Subsidy
Comment 3: Whether the Department Should Apply AFA with Respect
to POSCO Chemtech's Unreported Port Usage Grants
Comment 4: Whether the Department Should Apply AFA with Respect
to POSCO M-Tech's Unreported Subsidies
Comment 5: Whether the Department Should Apply AFA with Respect
to POSCO Chemtech's Research & Development Grant Program
Comment 6: Whether the Department Should Apply AFA with Respect
to Hyundai Corporation's Unreported Tax Exemption
Comment 7: Whether the Department Should Find Have Initiated
Nucor's Allegation that the GOK Provides the Provision of Natural
Gas in All Forms for LTAR
Comment 8: Whether the Department Should Revise its Calculation
Regarding Benefit to POSCO under Restriction of Special Taxation Act
Article 9
Comment 9: Whether the Department Verified that POSCO Did Not
Receive any Benefit under the Free Economic Zone Programs
Comment 10: Whether the Department Finds Tax Programs de facto
Specific
XI. Recommendation
[FR Doc. 2017-06632 Filed 4-3-17; 8:45 am]
BILLING CODE 3510-DS-P