[Federal Register Volume 83, Number 56 (Thursday, March 22, 2018)]
[Notices]
[Pages 12592-12594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05815]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. 337-TA-1002]


Certain Carbon and Alloy Steel Products; Commission Determination 
To Terminate the Investigation With Respect to the Antitrust Claim; 
Request for Written Submissions on Remedy, the Public Interest, and 
Bonding With Respect to Defaulting Respondents

AGENCY: U.S. International Trade Commission.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the U.S. International Trade 
Commission has determined to terminate the investigation with respect 
to a claim by complainant United States Steel Corporation of 
Pittsburgh, Pennsylvania (``U.S. Steel'') for violation of section 337 
based on a conspiracy to fix prices and control output and export 
volumes in violation of the antitrust laws of the United States. The 
Commission requests written submissions, under the schedule set forth 
below, on remedy, public interest, and bonding concerning the 
previously defaulted respondents subject to the false designation of 
origin claim.

FOR FURTHER INFORMATION CONTACT: Megan M. Valentine, Office of the 
General Counsel, U.S. International Trade Commission, 500 E Street SW, 
Washington, DC 20436, telephone (202) 708-2301. Copies of non-
confidential documents filed in connection with this investigation are 
or will be available for inspection during official business hours 
(8:45 a.m. to 5:15 p.m.) in the Office of the Secretary, U.S. 
International Trade Commission, 500 E Street SW, Washington, DC 20436, 
telephone (202) 205-2000. General information concerning the Commission 
may also be obtained by accessing its internet server at https://www.usitc.gov. The public record for this investigation may be viewed 
on the Commission's electronic docket (EDIS) at https://edis.usitc.gov. 
Hearing-impaired persons are advised that information on this matter 
can be obtained by contacting the Commission's TDD terminal on (202) 
205-1810.

SUPPLEMENTARY INFORMATION: The Commission instituted Inv. No. 337-TA-
1002 on June 2, 2016, based on a complaint filed by complainant U.S. 
Steel, alleging a violation of section 337 of the Tariff Act of 1930, 
as amended, 19 U.S.C. 1337 (``section 337''). See 81 FR 35381 (June 2, 
2016). The complaint alleges violations of section 337 based upon the 
importation into the United States, or in the sale after importation of 
certain carbon and alloy steel products by reason of: (1) A conspiracy 
to fix prices and control output and export volumes, the threat or 
effect of which is to restrain or monopolize trade and commerce in the 
United States; (2) misappropriation and use of trade secrets, the 
threat or effect of which is to destroy or substantially injure an 
industry in the United States; and (3) false designation of origin or 
manufacturer, the threat or effect of which is to destroy or 
substantially injure an industry in the United States. Id. The notice 
of investigation identified forty (40) respondents that are Chinese 
steel manufacturers or distributors, as well as some of their Hong Kong 
and United States affiliates. Id. In addition, the Office of Unfair 
Import Investigations is also a party in this investigation. Id. 
Eighteen (18) respondents participated in the investigation and all 
other respondents were found in default, including fifteen (15) 
respondents that are subject to the

[[Page 12593]]

false designation of origin claim: (1) Shandong Iron and Steel Group 
Co. Ltd. of Jinan City, China; Shandong Iron and Steel Co., Ltd. of 
Jinan City, China; Jigang Hong Kong Holdings Co., Ltd. of Hong Kong, 
China; and Jinan Steel International Trade Co., Ltd. of Jinan City, 
China; (2) Benxi Iron and Steel (Group) International Economic and 
Trading Co. Ltd. and Benxi Steel (Group) Co. Ltd., both of Benxi City, 
China; and (3) Tianjin Tiangang Guanye Co., Ltd. of Tianjin, China; 
Wuxi Sunny Xin Rui Science and Technology Co., Ltd. of Wuxi Province, 
China; Taian JNC Industrial Co., Ltd. of Tai'an City, China; EQ Metal 
(Shanghai) Co., Ltd. of Shanghai, China; Kunshan Xinbei International 
Trade Co., Ltd. of Jiangsu, China; Tianjin Xinhai Trade Co., Ltd. of 
Tianjin, China; Tianjin Xinlianxin Steel Pipe Co., Ltd. of Tianjin, 
China; Tianjin Xinyue Industrial and Trade Co., Ltd. of Tianjin, China; 
and Xian Linkun Materials (Steel Pipe Supplies) Co., Ltd. of Xi'an 
City, China (collectively, the ``Defaulting Respondents''). See Comm'n 
Notice (Oct. 14, 2016), Comm'n Notice (Oct. 18, 2016), Comm'n Notice 
(Nov. 18, 2016).
    On August 26, 2016, the participating respondents filed a motion to 
terminate U.S. Steel's antitrust claim under 19 CFR 210.21. On November 
14, 2016, the presiding administrative law judge (``ALJ'') issued an 
initial determination (``ID''), granting Respondents' motion to 
terminate Complainant's antitrust claim under 19 CFR 210.21 and, in the 
alternative, under 19 CFR 210.18. Order No. 38 (Nov. 14, 2016). On 
December 19, 2016, the Commission issued a Notice determining to review 
Order No. 38. See 81 FR 94416-7 (Dec. 23, 2016). On April 20, 2017, the 
Commission held an oral argument on the issue of whether a complainant 
alleging a violation of section 337 based on antitrust law must show 
antitrust injury.
    On February 15, 2017, U.S. Steel filed a motion to partially 
terminate the investigation on the basis of withdrawal of its trade 
secret allegations, which were alleged against only certain of the 
participating respondents. On February 22, 2017, the ALJ issued an ID, 
granting U.S. Steel's motion to terminate the investigation with 
respect to its trade secret allegations. Order No. 56 (Feb. 22, 2017). 
On March 24, 2017, the Commission determined not to review Order No. 
56. Comm'n Notice (Mar. 24, 2017).
    On October 2, 2017, the ALJ issued an ID, granting the remaining 
participating respondents' motions for summary determination of no 
section 337 violation based on false designation of origin. Order No. 
103 (Oct. 2, 2017). On November 1, 2017, the Commission determined not 
to review Order No. 103. Comm'n Notice (Nov. 1, 2017).
    Having examined the record of this investigation, including Order 
No. 38, the petitions for review, the responses thereto, the parties' 
submissions on review, and the parties' statements at the oral 
argument, the Commission has determined that a complainant alleging a 
violation of section 337 based on antitrust law must show antitrust 
injury, which is a standing requirement. The Commission finds that U.S. 
Steel has failed to plead antitrust injury and U.S. Steel has taken the 
position that, if given the opportunity to amend the complaint, it will 
not be able to plead or demonstrate antitrust injury. Accordingly the 
Commission has determined to terminate the investigation with respect 
to U.S. Steel's antitrust claim. Commissioner Broadbent dissents and 
has filed a dissenting opinion.
    Section 337(g)(1) and Commission Rule 210.16(c) authorize the 
Commission to order relief against any defaulting respondent against 
which U.S. Steel alleged false designation of origin, unless, after 
considering the public interest, the Commission finds that such relief 
should not issue. Given the disposition of the underlying false 
designation of origin claims for the participating respondents in Order 
No. 103, any relief issued in this investigation would not apply to the 
participating respondents.
    In connection with the final disposition of this investigation, the 
Commission may: (1) Issue an order that could result in the exclusion 
of articles manufactured or imported by the Defaulting Respondents; 
and/or (2) issue cease and desist orders that could result in the 
Defaulting Respondents being required to cease and desist from engaging 
in unfair acts in the importation and sale of such articles. 
Accordingly, the Commission is interested in receiving written 
submissions that address the form of remedy, if any, that should be 
ordered. If a party seeks exclusion of an article from entry into the 
United States for purposes other than entry for consumption, the party 
should so indicate and provide information establishing that activities 
involving other types of entry either are adversely affecting it or 
likely to do so. For background, see Certain Devices for Connecting 
Computers via Telephone Lines, Inv. No. 337-TA-360, USITC Pub. No. 
2843, Comm'n Op. at 7-10 (December 1994).
    If the Commission contemplates some form of remedy, it must 
consider the effects of that remedy upon the public interest. The 
factors that the Commission will consider include the effect that the 
exclusion order and/or cease and desists orders would have on (1) the 
public health and welfare, (2) competitive conditions in the U.S. 
economy, (3) U.S. production of articles that are like or directly 
competitive with those that are subject to investigation, and (4) U.S. 
consumers. The Commission is therefore interested in receiving written 
submissions that address the aforementioned public interest factors in 
the context of this investigation.
    If the Commission orders some form of remedy, the U.S. Trade 
Representative, as delegated by the President, has 60 days to approve 
or disapprove the Commission's action. See Presidential Memorandum of 
July 21, 2005, 70 FR 43251 (July 26, 2005). During this period, the 
subject articles would be entitled to enter the United States under 
bond, in an amount determined by the Commission and prescribed by the 
Secretary of the Treasury. The Commission is therefore interested in 
receiving submissions concerning the amount of the bond that should be 
imposed if a remedy is ordered.
    Written Submissions: Parties to the investigation, including the 
Office of Unfair Import Investigations, interested government agencies, 
and any other interested parties are encouraged to file written 
submissions on the issues of remedy, the public interest, and bonding. 
Complainant and the Office of Unfair Import Investigations are also 
requested to submit proposed remedial orders for the Commission's 
consideration. Complainant is further requested to state the HTSUS 
numbers under which the accused products are imported and any known 
importers of the accused products. The written submissions and proposed 
remedial orders must be filed no later than close of business on March 
30, 2018. Initial submissions are limited to 50 pages, not including 
any attachments or exhibits related to discussion of the public 
interest. Reply submissions must be filed no later than the close of 
business on April 6, 2018. Reply submissions are limited to 25 pages, 
not including any attachments or exhibits related to discussion of 
remedy, the public interest, and bonding. No further submissions on 
these issues will be permitted unless otherwise ordered by the 
Commission.
    Persons filing written submissions must file the original document 
electronically on or before the deadlines stated above and submit 8 
true paper

[[Page 12594]]

copies to the Office of the Secretary by noon the next day pursuant to 
section 210.4(f) of the Commission's Rules of Practice and Procedure 
(19 CFR 210.4(f)). Submissions should refer to the investigation number 
(``Inv. No. 337-TA-1002'') in a prominent place on the cover page and/
or the first page. (See Handbook for Electronic Filing Procedures, 
https://www.usitc.gov/secretary/documents/handbook_on_filing_procedures.pdf). Persons with questions regarding 
filing should contact the Secretary (202-205-2000).
    Any person desiring to submit a document to the Commission in 
confidence must request confidential treatment. All such requests 
should be directed to the Secretary to the Commission and must include 
a full statement of the reasons why the Commission should grant such 
treatment. See 19 CFR 201.6. Documents for which confidential treatment 
by the Commission is properly sought will be treated accordingly. All 
information, including confidential business information and documents 
for which confidential treatment is properly sought, submitted to the 
Commission for purposes of this Investigation may be disclosed to and 
used: (i) By the Commission, its employees and Offices, and contract 
personnel (a) for developing or maintaining the records of this or a 
related proceeding, or (b) in internal investigations, audits, reviews, 
and evaluations relating to the programs, personnel, and operations of 
the Commission including under 5 U.S.C. Appendix 3; or (ii) by U.S. 
government employees and contract personnel,\1\ solely for 
cybersecurity purposes. All nonconfidential written submissions will be 
available for public inspection at the Office of the Secretary and on 
EDIS.
    The authority for the Commission's determination is contained in 
section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and 
in Part 210 of the Commission's Rules of Practice and Procedure (19 CFR 
part 210).
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    \1\ All contract personnel will sign appropriate nondisclosure 
agreements.

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    By order of the Commission.

    Issued: March 19, 2018.
Lisa R. Barton,
Secretary to the Commission.
[FR Doc. 2018-05815 Filed 3-21-18; 8:45 am]
BILLING CODE 7020-02-P